MKM Partners Raises Price Target on NVIDIA (NVDA) Following 1Q Beat
MKM Partners maintained a Buy rating on NVIDIA (NASDAQ: NVDA), and raised the price target to $43.00 (from $39.00), following the company's 1Q earnings report. NVDA reported revenue of $1,305M, well above the consensus estimate of $1,265M. EPS was $0.33, ahead of the consensus of $0.31.
Analyst Ian Ing commented, "NVDA reported a $0.03 beat on an uptick in data center (up 47%) offsetting more seasonal gaming (down 15%). Revenue and gross margin guidance was well above consensus (including our Street-high revenue) on the Pascal refresh in gaming (53% of sales) and expected growth in all other segments. NVDA continues to be our top pick, given the imminent Pascal gaming refresh and GPUs having unique exposure to a long list of promising applications (core gaming, data center acceleration, virtual reality, autonomous cars and drones) that are outperforming PCs and smartphone opportunities. We reiterate our Buy rating and raise our price target from $39 to $43 (29x our GAAP EPS forecast of $1.48 the next four unguided quarters)."
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Shares of NVIDIA closed at $35.57 yesterday.