Nintendo’s stock downgraded: Proof that you don’t always get it right

It looks as if KBC Securities of Japan isn’t feeling all that confident that Nintendo can continue down the path of dominance much longer. As a result, they’ve decided to downgrade Nintendo’s target price by a whopping 30-percent, and change its investment rating from “buy” to “hold.”

“Sales in the U.S. and Europe are peaking after “amazing growth” this fiscal year, Kamide wrote in the report. “We believe that it is reasonable to expect a tougher trading environment.”

However, the gloom and doom machine doesn’t stop there. Greenpeace has taken aim at Nintendo once more, citing them as the worst of the worst environmental offenders, of the top electronic manufacturers that made the survey: 

 “Nintendo remains the odd one out of the 18 companies in the Guide, without any public timelines to eliminate the worst toxic chemicals or a global recycling policy for the millions of products it sells every year. If Nintendo has better policies why not make them public like the other 17 companies in the Guide?”

As far as the stocks are concerned, the word “premature” comes to mind. Last time we checked, the Wii and DS were still selling, games like Super Smash Bros. Brawl were tearing up the charts, and Nintendo is still managing to make money hand over fist as a result. Word to KBC: Sony and Microsoft may be picking up steam, but Nintendo is still enjoying the lead. You might want to hold off on that downgrade for a bit longer.

As for Greenpeace, I’d counter that charge about Nintendo not having a solid recycling program in place for outdated products with this: Have you not noticed that people are still playing NES games these days? When you design quality hardware that can go the distance, and games that fall under the description of timeless, words like recycling have little meaning.

I know their glaring lack of a decent online plan is still a hurdle that Nintendo needs to cross, but other than that, they are doing quite well for themselves. Save the clouds for a real rainy day. The sun is still beaming down on them right now.

[Thanks, Jonathan]

SRVSLPS