Wells Fargo Keeps NVIDIA (NVDA) At Underperform But Raises PT 79%
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Wells Fargo analyst David Wong stuck to his guns and kept his Underperform rating on shares of NVIDIA (NASDAQ: NVDA) after the company reported revenues for the quarter of $2.004B on (up 40% sequentially, up 54% year over year), significantly above Nvidia’s original guidance range of $1.68 billion +/- 2%. Reported GAAP gross margin in the quarter increased to 59.0% from 57.8% in the prior quarter, above the midpoint Nvidia’s GAAP guidance for gross margin to be 57.8% +/- 50bps. GAAP EPS for the quarter of $0.83 was significantly above the consensus est of $0.56 and our $0.54 GAAP EPS est.
Discussing the segments, gaming and datacenter showed impressive growth and automotive contributed in the October quarter. The analyst's FY17 EPS estimate increases to $2.37 from
$1.77 and the analyst is raising his valuation range substantially, to $54-64 from $30-36, based on
~20-24x FY18 EPS of $2.67. That said, the stock price is above the new valuation range and the Underperform rating stays.
Shares of NVIDIA closed at $67.77 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Time (TIME): Stuck Until A Deal Is Announced - Wells Fargo
- Oppenheimer Raises Price Target on CarMax (KMX) to $72 Ahead of 3Q
- UBS Raises Price Target on Dick's Sporting Goods (DKS) to $69
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Earnings
Related EntitiesWells Fargo
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!