NVIDIA (NVDA) PT Raised to $71 at UBS Following Strong Qtr and Accelerating Trends

August 12, 2016 8:51 AM EDT
Get Alerts NVDA Hot Sheet
Price: $95.07 --0%

Rating Summary:
    23 Buy, 18 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 7 | New: 1
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UBS analyst Stephen Chin reiterated a Buy rating and lifted his price target on NVIDIA (NASDAQ: NVDA) to $71.00 (from $53.00) following another strong quarter with accelerating trends.

Chin commented, "We reiterate our Buy rating as we remain comfortable NVDA can grow sales over 10% yoy from new opportunities in gaming, machine learning, virtual reality, and self-driving cars. NVDA beat all of its Jul-16 targeted financial guidance with strong yoy sales growth in all 4 of its segments. NVDA's largest segment of gaming (55% of sales) showed yoy growth of 18%. We believe this segment likely has solid visibility now that its new chip, Pascal, has started shipping. We expect NVDA to benefit from a multi-year upgrade cycle from its 80M installed base of gamers. NVDA reported that only 33% of its installed base of gamers has upgraded to its Maxwell chip, which was introduced in FY15. NVDA's gross margin guidance for its Oct-16 quarter was flat at 58% despite sales being guided up 17% qoq, but we not too concerned as it is likely mix related."

The firm is raising FY17/FY18 EPS estimates 19%/16% on higher sales momentum.

For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.

Shares of NVIDIA closed at $59.70 yesterday.



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