Nintendo and Sony stocks see gains based on increasing revenues, a strengthening of the yen and analyst upgrades.
Shares of Nintendo Co. (OTC Shares: NTDOY) hit all-time record highs yesterday, climbing 3.2 percent to 37,450 yen ($312) on the Osaka Securities Exchange following an analyst upgrade from JP Morgan Securities Japan Co., a second-week continuing rise in the value of the yen and expected revenue growth throughout 2007 based on Nintendo’s own forecasts for 900 billion yen in sales this year.
JP Morgan Securities Japan Co. analysts Eiji Maeda and Yuko Sekine commented on Nintendo’s future success. “We expect operating profit growth to remain strong over the medium term.” They expect Nintendo’s shares to rise 15 percent from the current price to 42,500 yen by April 2008.
Sony Corp. (SNE) has also seen a 9 percent gain in price over the past two weeks due to the power of the yen. Since a 52 week low of $37.24, shares closed yesterday at $55.47, up 47 percent in the past six months.
Source: Bloomberg
