Despite Strong Numbers, MKM Partners Not Onboard with Other Analysts Regarding NVIDIA (NVDA)
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Price: $225.16 -0.06%
Rating Summary:
58 Buy, 10 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
58 Buy, 10 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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MKM Partners maintained their Neutral rating on NVIDIA (NASDAQ: NVDA) but raised their price target of $14.00 (from $13.00)
Daniel Berenbaum, analyst and Executive Director at MKM, said “As we discussed back in May, we could see growing more thematically constructive on the emerging potential for NVDA to benefit from some of the same cloud computing trends that have boosted INTC over the past several years – to wit, graphics processing power is moving to the cloud, NVDA has the leading architecture, and AMD is rapidly fading.”
“That said,” added Berenboum, “PC demand for GPU seems flattish, Quadro/Tesla have never fulfilled their promise, and mobility will likely continue to require large investments (and NVDA remains at a disadvantage in terms of critical mass). Net/net we still see just over $1 earnings power (and are mindful of risk to the roughly $15mn/quarter royalty revenue when the new game console cycle kicks in at the end of CY13), which keeps us on the sidelines at current levels.”
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 $14.71 yesterday.
Daniel Berenbaum, analyst and Executive Director at MKM, said “As we discussed back in May, we could see growing more thematically constructive on the emerging potential for NVDA to benefit from some of the same cloud computing trends that have boosted INTC over the past several years – to wit, graphics processing power is moving to the cloud, NVDA has the leading architecture, and AMD is rapidly fading.”
“That said,” added Berenboum, “PC demand for GPU seems flattish, Quadro/Tesla have never fulfilled their promise, and mobility will likely continue to require large investments (and NVDA remains at a disadvantage in terms of critical mass). Net/net we still see just over $1 earnings power (and are mindful of risk to the roughly $15mn/quarter royalty revenue when the new game console cycle kicks in at the end of CY13), which keeps us on the sidelines at current levels.”
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 $14.71 yesterday.
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