RBC Capital Upgrades NVIDIA (NVDA) to Outperform Following Blowout Quarter

RBC Capital upgraded NVIDIA (NASDAQ: NVDA) from Sector Perform to Outperform with a price target of $72.00 (from $47.00) given a blow out quarter (guide as well) and material change in the Data Center story.

Analyst Mitch Steves commented, "We think the NVIDIA story has materially changed to a structural long driven by 1) deep learning, 2) automotive and 3) virtual reality growth. While expectations were originally slated for ~8-12% revenue growth, we think 20-30% is now on the table combined with margin tailwinds from improving yield on production. Data Center out-performance was the primary driver to a thesis changing moment (potential for q/q growth through CY16) given our previous stance for a single leg of growth (Virtual Reality). Finally, the Automotive segment continues to act as a call option on the stock if the Drive PX platform sees robust growth. Net Net: we are moving to an Outperform rating and move our price target to $72."

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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