Nomura Securities Maintains a 'Neutral' on NVIDIA (NVDA); Earnings Preview

Nomura Securities maintains a 'Neutral' on NVIDIA (NASDAQ: NVDA) price target of $15.00.

Nomura analyst, Romit Shah, said, "We believe an in-line quarter and outlook on Thursday should lift shares of Nvidia, which has underperformed the SOX by 8% over the past three weeks and by 15% over the past six months. That said, we are maintaining a Neutral rating as we see risk to the 2012 target of $1.0bn in Tegra revenue. Our estimates are unchanged at $1.07bn (up 1% q/q)/ $0.25 in FQ4 and $4.5bn (+9% y/y)/ $1.10 in CY12. Valuation is not expensive in our opinion. Excluding $4.50 in cash, the stock trades at 9x CY12 GAAP EPS, and on EV/sales, Nvidia is trading at a 41% discount to our coverage versus a five-year average discount of 29%."

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 $14.74 yesterday.

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