Susquehanna Upgrades NVIDIA (NVDA) to Positive; Miss is Priced In

(Updated - November 13, 2018 7:04 AM EST)

(updated to add analyst comments)

Susquehanna analyst Christopher Rolland upgraded NVIDIA (NASDAQ: NVDA) from Neutral to Positive with a price target of $230.00 (from $250.00).

While Rolland said the odds of a guidance miss are high, the implied valuation discounts an excessively severe downside scenario. The analyst said this is not a call on the quarter. Rolland believes the company’s near-term issues should pass in a quarter (or two), while valuation supports greatly reduced estimates and longer-term opportunities abound.

"While the RTX cycle appears ho-hum, we are compelled by new 7nm GPUs next fall, a pro-viz cycle, and the growing A.I. inference opportunity," he adds. Rolland thinks the T4 for AI inference could be NVIDIA's next big thing.

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 $192.17 yesterday.

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