He's not predicting doom for the company...He just thinks WiiU can't recover. It's really not THAT unbelievable. It's also subjective wording. Does that mean he thinks it won't reach 40m, or 30m or 20m? Personally I would think WiiU sales should get to 40m and possibly quite a bit beyond if Nintendo play their cards right. So they can recover, in a way, but Pachter might look at the meaning behind that phrase differently.
He's clearly saying Nintendo as a whole can't recover, though, not just the WiiU. It'd be what he wants for some reason.