Nintendo (NDOTY) is out with an update on sales of its latest game console the Switch, which shows the Japanese game maker has a huge success on its hands that is even surpassing its own expectations.
In conjunction with its earnings report Thursday, Nintendo said it has sold 2.74 million units during March of the Switch, higher than the 2 million the company had forecasted it would ship in its first month. The company is forecasting 10 million unit sales of Switch for its current financial year, which according to an estimate by the Verge, would indicate it is forecasting Switch unit sales of almost 13 million by April of next year. Nintendo is forecasting it will ship 35 million games during its current year that is complete at the end of March. (See also: Morgan Stanley: Nintendo Switch Not ‘Baked In’)
But it’s not only the Switch that is selling like hotcakes around the globe. Nintendo said it shipped 5.46 million games for the Switch in March alone with The Legend of Zelda: Breath of the Wild selling 3.84 million units around the world with 2.76 million for the Switch and 1.08 million copies for its Wii U. Since the launch of the Switch, The Legend of Zelda: Breath of the Wild has been getting rave reviews and was seen as a big driver for the Switch since the game console launched with limited game titles. (See also: Nintendo’s Upcoming Switch Lineup Has Jefferies Excited)
Ever since Nintendo rolled out the Switch and consumers expressed huge interest in the game console, Wall Street has been getting increasingly bullish on the company and its stock. Just last week, JPMorgan raised its price target on Nintendo, implying 43% upside to the stock. JPMorgan Analyst Haruka Mori was driven to raise her price target to JPY39,000 or $326.03 a share from JPY29,000 or $242.43 a share because of the strong demand for the Switch since its launch in early March. The analyst expects Nintendo to rake in JPY290 billion in fiscal 2019, up from JPY194 billion as a result of the Switch. In a note to clients reported on by Barron’s, the analyst said because of demand for the Switch, she raised her sales volume for the game console to 13 million units in fiscal year 2017, up from 10 million units. For fiscal 2018 the analyst expects Nintendo to ship 17 million units of the Switch, up from 13 million units and 14.5 million units in fiscal year 2019, up from 12 million.