Tokyo - The worldwide success of Pokémon Go is finally making a believer out of Nintendo’s most bearish analyst.
SMBC Nikko Securities’ Eiji Maeda had an underperform rating on the company’s stock and the lowest price target among 15 Nintendo analysts tracked by Bloomberg.
But in a report published Thursday, he says the worst is over for the Kyoto-based company, after shares tumbled this week by the most in 27 years.
Maeda upgraded his outlook to neutral and raised his price target, citing the prospects for higher profits from Pokémon Go and upcoming titles.
Despite his estimate that only 7% of Pokemon Go’s sales go to Nintendo, he expects the hit game to begin delivering 20 billion to 30 billion yen ($191-$287m) to the company’s bottom line this fiscal year.
Maeda also cited the launch of the NX console, which should begin generating returns after it debuts early next year. He raised his price target to 21 500 yen from 14 500 yen, compared with Friday’s close at 21 505 yen.
Still, he pared his optimism, saying he wants to see whether upcoming smartphone games can recreate the success of Pokemon Go.