NVIDIA (NVDA) PT Raised to $71 at UBS Following Strong Qtr and Accelerating Trends

UBS analyst Stephen Chin reiterated a Buy rating and lifted his price target on NVIDIA (NASDAQ: NVDA) to $71.00 (from $53.00) following another strong quarter with accelerating trends.

Chin commented, "We reiterate our Buy rating as we remain comfortable NVDA can grow sales over 10% yoy from new opportunities in gaming, machine learning, virtual reality, and self-driving cars. NVDA beat all of its Jul-16 targeted financial guidance with strong yoy sales growth in all 4 of its segments. NVDA's largest segment of gaming (55% of sales) showed yoy growth of 18%. We believe this segment likely has solid visibility now that its new chip, Pascal, has started shipping. We expect NVDA to benefit from a multi-year upgrade cycle from its 80M installed base of gamers. NVDA reported that only 33% of its installed base of gamers has upgraded to its Maxwell chip, which was introduced in FY15. NVDA's gross margin guidance for its Oct-16 quarter was flat at 58% despite sales being guided up 17% qoq, but we not too concerned as it is likely mix related."

The firm is raising FY17/FY18 EPS estimates 19%/16% on higher sales momentum.

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.

You May Also Be Interested In

• Robinhood Markets (HOOD) PT Raised to $130 at Cantor Fitzgerald
• Progyny (PGNY) PT Raised to $33 at Truist Securities
• Accenture plc (ACN) PT Lowered to $150 at Truist Securities