Wall Street’s reputation for bending the rules always leads to raised eyebrows in the trading community when a firm times a call on a stock a little too well.
Apparently, Deutsche Bank had one of these spectacularly well-timed calls on Nintendo Co. Ltd. (ADR) NTDOY 1.24% on Wednesday when it upgraded the stock from Hold to Buy. Hours later, the stock spiked 28 percent when the company announced it’s bringing several new games to Apple Inc. AAPL 0.56%’s mobile platforms in coming months, including “Super Mario Run.”
Nintendo stole the show from Apple at its own iPhone 7 media event as investors cheered the news buy piling into Nintendo stock.
Analyst Han Joon Kim gave his own reasons why he believes Nintendo’s 2Q17 earnings have room for upside:
- 1. He expected news on the company’s new NX console by the end of the year.
- 2. He anticipated a November release of smartphone games “Animal Crossing” and “Fire Emblem.”
- 3. He expected positive earnings contributions from Pokemon GO, existing 3DS hardware and Nintendo’s sale of its Seattle Mariners stake.
Deutsche Bank’s upgrade certainly looks…
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