Nomura Securities Maintains a 'Neutral' on NVIDIA (NVDA); Review of 1Q Results

Nomura Securities maintains a 'Neutral' on NVIDIA (NASDAQ: NVDA).

Nomura analyst, Romit Shah, said, "Nvidia reported a solid April quarter with revs of $962M (+8% QoQ) exceeding guidance of 5-7% growth and EPS of $0.22 (ex tax benefit) above our $0.19 estimate. However, due to weakness in professional solutions (21% of revs) and limited visibility on Tegrabased tablets, we’re reducing our sequential revenue growth estimates for Q3 and Q4 to 2% (5%) and 0% (6%), respectively. Our estimates increase to $0.97 from $0.92 in CY11 but decrease to $1.11 from $1.25 in CY12. The stock in our view is expensive at 18x CY12 EPS given expectations for mid-teen growth this year, and we maintain our Neutral rating."

For more ratings news on NVIDIA click here and for the rating history of NVIDIA click here.

Shares of NVIDIA closed at $20.50 yesterday.

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