Nintendo stock ratings reduced due to slowing growth

Investors in Japan have been keeping a close eye on Nintendo’s financial growth and have decided to cut down the company’s stock ratings. This is due to the slowly flagging growth the company has been showing ever since its peaked growth during the past fiscal year. You can check out the financial details of this decision by reading our full article.

It seems like investors in Japan have expressed concerns with Nintendo after analysts’ prediction of the company’s sales leveling out after a year of peaked growth.

According to a report from analyst Hiroshi Kamide, KBC Securities Japan downgraded Nintendo’s 12-month price estimate by 30 percent to Â¥57,500 (US$ 580). He also mentioned that the company should now expect “a tougher trading environment” after its amazing growth this past fiscal year in the U.S. and Europe.

Despite Nintendo being able to outdo its rivals for a third time this fiscal year, KBC reduced its own outlook for the Osaka-based company’s net income for the next fiscal year by 8 percent to Â¥391.6 billion, DS console shipments by 6 percent, and Wii software sales by 5 percent.

The stocks for Nintendo have already dropped by 22 percent this year after showing doubled growth in 2006 and 2007. We look forward to seeing if Nintendo has any strategies to offset its apparently slowing growth. Keep coming back to this spot for more financial updates regarding Nintendo.