Needham & Company Maintains a 'Buy' on NVIDIA (NVDA); Raising PT as Realistic Expectations for Tegra are Established
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Price: $225.16 --0%
Rating Summary:
58 Buy, 10 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
Rating Summary:
58 Buy, 10 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
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Needham & Company maintains a 'Buy' on NVIDIA (NASDAQ: NVDA) price target raised from $17 to $20.
Analyst, Rajvindra S. Gill, said, "We maintain our rating on NVDA and raise our price target to $20 based on our new FY14 (CY13) Non-GAAP ests. NVDA guided below the Street for C1Q, but above our estimate, and reset its expectations for Tegra in 2012 We were encouraged by these two actions as we are approaching a bottom in terms of revenues/earnings (we think C2Q) & establishing a more realistic forecast for Tegra. These two areas could have been a potential overhang on the shares as we progressed throughout the year. We remain confident that Tegra will be adopted broadly in the smartphone market, particularly in China, and we believe the Tegra 3 is well-positioned for Windows 8 on ARM. In addition, we anticipate the GPU biz will rebound as NVDA increases its yields on 28nm and benefits from the replenishment in discrete GPUs post-Thailand. NVDA is currently trading at 10x P/E CY13, ex-cash, which is a discount to its large-cap semi peers who compete in the handset space. We recommend investors accumulate shares on post-earnings weakness as we see continued upside throughout 2012."
Our FY13 (CY12) estimates move to $4.1BN/$0.95 (vs. $4.16BN/$1.10). We are introducing our FY14 (CY13) estimates of $4.45BN/$1.15.
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 $16.17 yesterday.
Analyst, Rajvindra S. Gill, said, "We maintain our rating on NVDA and raise our price target to $20 based on our new FY14 (CY13) Non-GAAP ests. NVDA guided below the Street for C1Q, but above our estimate, and reset its expectations for Tegra in 2012 We were encouraged by these two actions as we are approaching a bottom in terms of revenues/earnings (we think C2Q) & establishing a more realistic forecast for Tegra. These two areas could have been a potential overhang on the shares as we progressed throughout the year. We remain confident that Tegra will be adopted broadly in the smartphone market, particularly in China, and we believe the Tegra 3 is well-positioned for Windows 8 on ARM. In addition, we anticipate the GPU biz will rebound as NVDA increases its yields on 28nm and benefits from the replenishment in discrete GPUs post-Thailand. NVDA is currently trading at 10x P/E CY13, ex-cash, which is a discount to its large-cap semi peers who compete in the handset space. We recommend investors accumulate shares on post-earnings weakness as we see continued upside throughout 2012."
Our FY13 (CY12) estimates move to $4.1BN/$0.95 (vs. $4.16BN/$1.10). We are introducing our FY14 (CY13) estimates of $4.45BN/$1.15.
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 $16.17 yesterday.
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