Nintendo Reaches New Highs, JP Morgan Boosts Target

After reporting record fiscal year earnings yesterday, Nintendo (NTDOY.PK) (JP: 7974) rallied 1.6% to ¥37,800 today ($39.71 ADR equiv. at ¥119/$1), hitting ¥38,050 intra-day, both new all-time highs. In addition, JP Morgan raised its target share price by 6% to ¥45,000 ($47.27).

I was somewhat skeptical of what the reaction would be (it posted after-hours yesterday) given the 3-day weekend and because Japanese exchanges will also be closed next Thursday and Friday for Golden Week.

Volume, by the way, was pretty strong -- the highest in about seven sessions -- with it gapping up 1.75% to ¥37,850.

JP Morgan is maintaining its "overweight" rating and its new target represents potential upside of about 19%.

Macquarie Securities has the highest target I'm aware of, at ¥50,000 ($52.52 ADR equiv.), issued April 6.

Nintendo's ADRs gained 2.4% to $40.65 yesterday, putting them at around a 2.3% premium.

NTDOY chart:

Disclosure: The author does not own shares of Nintendo.