Pacific Crest Downgrades NVIDIA (NVDA) to Underweight, Sees Downside To $90

(Updated - April 4, 2017 7:43 AM EDT) (updated to add further analyst color)

Pacific Crest downgraded NVIDIA (NASDAQ: NVDA) from Sector Weight to Underweight.

Analyst Mike McConnel downgrades NVDA as desktops become saturated and a possible pause in Datacenter business dampens performance. He notes also that desktop graphics card manufactures are not expecting growth this year following weak yy unit sales, low likelihood of ASP expansion and low share base of AMD Vega. Further, McConnel sees a roughly $0.10 EPS impact from the low margin profile attributed to Nintendo Switch revenue.

He lowers his FY 2018 EPS estimate from 2.60 to $2.50 and lowers FY 2019 EPS estimate from $3.30 to $3.00

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 $108.38 yesterday.

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