UPDATE: Evercorp Upgrades NVIDIA Corporation to Equal-weight, $16.00 PT

In a report published Tuesday, Evercorp analyst Patrick Wang upgraded NVIDIA Corporation NVDA to Equal-weight, with a $16.00 price target. According to the report, while still cautious on the company's fundamentals going forward, a material downside in the near to medium term is no longer seen. “It seems more likely mgmt shutters its efforts in Tegra for smartphone,” the report noted. “While Tegra 4i is bound to capture some design wins (updates at MWC), it's unlikely to achieve critical mass and thus drive the volumes needed to justify this investment. We estimate a 50% reduction of Tegra op-ex (total: $300mn/yr) with continued efforts for auto / industrial / gaming / tablets. If so, this adds ~15c to annual EPS.” Some highlights from the report included: -Licensing likely >$0 -F4Q tracking in-line to better -Royalty story to stay NVDA closed Friday at $15.99.