NVIDIA (NVDA) PT Lowered to $250 at Oppenheimer
Oppenheimer analyst Rick Schafer lowered the price target on NVIDIA (NASDAQ: NVDA) to $250.00 (from $310.00) while maintaining an Outperform rating.
Schafer commented, "NVDA reported F3Q (Oct.) sales/EPS of $3.18B/$1.84, below consensus $3.24B/$1.93 estimates. More importantly, F4Q(Jan.) outlook of $2.70B significantly disappointed vs. Street’s $3.40B. Excess legacy mainstream Pascal (GPU) inventory led downside. Mgmt expects it will take two quarters to normalize channel inventory. We believe investors will be surprised by the magnitude and duration of gaming GPU excess and expect NVDA shares to trade lower near term. We see the mining-related miss as transitory. The response to NVDA’s newly launched Turing, boasting DLSS, ray-tracing and ~2x performance vs. Pascal, has been bullish. High-end 2080Ti remains widely stocked out. DC revenues continue to grow 50%-plus Y/Y and NVDA’s long-term secular growth thesis appears unchanged. Near term, we’re reducing estimates and price target but maintaining our Outperform."