Nintendo's 'Pokemon Go' rally is over: Deutsche

Gamers play with the Pokemon Go application on their mobile phone.
Remko De Waal | AFP | Getty Images

Deutsche Bank downgraded Nintendo to hold from buy, saying the video game maker's stock has peaked after its jolt from "Pokemon Go."

Nintendo shares are up more than 90 percent since the launch of the "Pokemon Go" smart phone game on July 6.

"The market is now valuing Nintendo at US$27bn in market capitalization (ex-cash & treasury shares at BV), on a par with global leaders such as EA and ATVI that respectively have 5% global video game market share vs. Nintendo's current 2%," Deutsche Bank's Han Joon Kim wrote in a note to clients Monday.

"We think the stock price now prices in a large portion of the market share recovery story, which we believe is readily achievable from leveraging its [intellectual property] to some degree. ... We are willing to model in a market share recovery by FY3/2019 to ~5%, but not towards the 10% level that Nintendo enjoyed in 2009 when Wii revolutionized the game industry."