Pachter drops Nintendo price target ahead of Q2 results

Wedbush Morgan analyst Michael Pachter's dropped his 12-month price target on Nintendo to ¥59,000 from ¥78,000 ahead of second quarter results from the firm.

Nintendo will release figures on Thursday, October 30. Pachter said he expects full-year guidance to drop thanks to shifts in the yen against the dollar and euro.

"While difficult to quantify, we expect operating income guidance to decline by approximately ¥100 billion, net income guidance to decline by approximately ¥200 billion (due to investment losses), and EPS guidance to decline by ¥1500," he said.

Pachter said, however, that Nintendo is expected to raise guidance slightly for hardware sales. The company's current estimates stand at 26.5 million units for Wii and 30.5 million units for DS.