Jefferies has confirmed its buy recommendation on Nintendo shares, raising its target price from 20,000 to 20,780 yen.

The analyst points out that the Switch 2 (NS2) sold more than 3.5 million units in the first four days following its global launch on 5 June, making it the biggest console launch in history.

By comparison, the original Switch sold 2.74 million units in one month, the PS4 sold 2.1 million in two weeks, and the PS5 sold 3.4 million in one month.

The broker has raised its cumulative sales forecast for the Switch 2 to 69 million units by March 2028 (up from 66 million previously). The launch alone already accounts for 20% of the target for the current fiscal year.

Jefferies also indicates a forecast of over fourfold growth in operating income over three years.

Jefferies believes that the increase in the installed base, combined with a strong offering for the summer and the end of the year, as well as a solid schedule of proprietary games (including a Splatoon spin-off announced on June 11), should support strong earnings growth in the medium and long term.


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