NTDOY - Nintendo price target cut at Citi as firm sees 'lack of visibility' on supply issues

Nintendo (OTCPK:NTDOY) reported quarterly results last week, but Citi said the "lack of visibility on the hardware production system" and some concerns about profitability of certain titles resulted in the investment firm cutting its price target and operating profit forecasts. Analyst Junko Yamamura reiterated his buy rating, but lowered his price target to ¥78,200, down from ¥84,700 before, noting that he expects software sales volume to be "more or less flat" from 2023, but when digital is added in, it could have an operating profit growth rate of 10.5% annualized "over the medium term." "We revise down for [operating profit] for FY3/22 and out by 8%-19%, due to a lack of visibility on hardware supply and as we reflect sales volumes and profitability of some titles," the analyst wrote in a note to clients.  "There is no change in our stance and we model an FY3/23-FY3/25 medium-term OP growth rate

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Nintendo price target cut at Citi as firm sees 'lack of visibility' on supply issues