BofA Securities Sees 4 Reasons NVIDIA (NVDA) Stock Reaction Could Be Negative After Earnings; PT to $250

August 3, 2021 6:51 AM EDT
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Price: $219.00 -1.54%

Rating Summary:
    37 Buy, 15 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 7 | Down: 15 | New: 24
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BofA Securities analyst Vivek Arya reiterated a Buy rating and raised his price target to $250 (from $225) on NVIDIA (NASDAQ: NVDA) ahead of earnings post-close on August 18th but thinks this could be a sell the news event.

The analyst stated "we look for upside to consensus Q2 ($6.3bn) and Q3 ($6.55bn) sales outlook. However, we anticipate enhanced volatility given: 1) the stock’s 30% move in the past 3mo (vs. SOX up 8%) following its split announcement; 2) temporary effect of crypto currency price swings in mix of gaming GPU and CMP boards; 3) tougher YoY compare in FQ2/Q3 data center sales as NVDA anniversaries addition of Mellanox from last year; and 4) known but still modest 2-3% headwind to EPS from recent revision in tax rates. We consider it possible for the initial stock reaction to be negative, but we believe solid long-term fundamentals will eventually prevail to create an enhanced Buy opportunity.

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 $197.50 yesterday.

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