NVIDIA (NVDA) PT Raised to $70 at Canaccord Genuity

Canaccord Genuity analyst Matthew Ramsay reiterated a Buy rating and raised his price target on NVIDIA (NASDAQ: NVDA) to $70.00 (from $67.50).

Ramsay commented, "NVIDIA's record July quarter results soundly beat our expectations and consensus, primarily driven by strong Pascal GPU demand and rapid growth in deep learning datacenter GPU sales to key customers including Facebook, Amazon, Microsoft, Baidu, and Alibaba. In addition, automotive revenue was also strong as Drive PX2 is now shipping to 80 OEMs. October quarter guidance was also materially above consensus, driven by ramping Pascal GPU sales in multiple price tiers. Overall, we maintain our belief that NVIDIA’s transformation from a PC-leveraged GPU supplier to a diverse visual-computing company is essentially complete, with growth and earnings power now driven by the company's four target growth markets of gaming, professional visualization, datacenter and automotive. We forecast strong long-term sales and earnings growth given the company's differentiated competitive position in markets driven by key secular themes including gaming, augmented/virtual reality, eSports, machine learning, and automotive display/control. In fact, we believe conservative modeling of NVIDIA's growth prospects could yield F2021 (C2020) non-GAAP EPS of near $4.00, with a more bullish growth trajectory delivering $5.00 in earnings power. Given the continued out-performance, we reiterate our BUY rating and raise our PT to $70."

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 $59.70 yesterday.

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