Needham & Company Upgrades NVIDIA (NVDA) to Buy; The Only Open-Ended Growth Story in Semis

November 14, 2016 7:05 AM EST
Get Alerts NVDA Hot Sheet
Price: $105.09 --0%

Rating Summary:
    24 Buy, 17 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 11 | New: 7
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Needham & Company upgraded NVIDIA (NASDAQ: NVDA) from Hold to Buy with a price target of $100.00, calling it the only open-ended growth story in Semis.

Analyst Rajvindra Gill commented, "We upgrade NVDA to Buy and establish a $100 PT post a significant beat and raise quarter. While NVDA reacted positively on Friday (up ~30% vs flat S&P500), we still see considerable upside as NVDA targets expanding markets. Our upgrade is principally based on long-term secular trends: 1) incorporation of ADAS applications in automotive market (25MM+ cars by 2019) and where NVDA's Drive PX2 supplies Level 3-5 autonomy (~$6B TAM); 2) proliferation of machine learning, AI and graphics virtualization in the data center; and 3) emergence of virtual reality devices in PC and gaming mkts driving higher graphics content. We believe NVDA can generate a base case of $3.10 of earnings power in FY18, and we have formulated a bull case scenario of $3.70-4.00 and $5-6 of long-term earnings power driven by the inflection of ADAS adoption."

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 $87.97 yesterday.

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