Wedbush Remains Bullish on NVIDIA (NVDA) Following Investor Meetings

Wedbush reiterates an Outperform rating and $24.00 price target on NVIDIA (NASDAQ: NVDA) following an investor meeting with CFO Colette Kress. NVDA says that they expect a decision on the patent infringement case against Samsung & Qualcomm in early October, and that new products were main drivers behind elevated inventory.

Analyst Betsy Hees commented, "NVDA noted that its ITC hearing against Samsung & Qualcomm for patent infringement is scheduled to being on June 22 and, based upon prior timing/cadence of hearings such as these, NVDA expects the decision in early October. NVDA noted that it has already been submitting documents for the case and the hearing is to present each side’s summaries and expected to take 1-2 weeks. NVDA also clarified its litigation expense guidance of $70MM to $90MM in FY16 would support all 4 cases with Samsung/Qualcomm."

Hees also added, "The higher Y/Y inventories in FQ1 (80 DOI vs. 67 DOI) were due to new products including GeForce 980 Ti for 4K gaming, multiple version of products necessary to support the automotive market, and new SHIELD Android TV solution and not due to any extra inventory from PC OEMs or other existing gaming GPUs. NVDA noted that it has no concerns with the channel inventory levels which currently look very normal."

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 $21.70 yesterday.

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