RBC on Monday upgraded NVIDIA NVDA to Outperform from Sector Perform.
RBC analyst Doug Freedman wrote the risk of near-term console revenue loss is removed, given the positive mix-shift focus of the company. Freedman continued to state, "NVDA's ability to leverage its past investments, with a more controlled spending structure ahead on unified, enables strong cash flow that is allowing a focus on capital return ($1.0bil planned for FY15)."
Freedman concluded by saying, "We believe the focus of its strategy including i) high-margin growth through vertical leadership; ii) strong B/S and significant liquidity; iii) focus on OpEx (on unified architecture leverages IP investments), is more aligned to facilitate a multi-year growth period in FCF."
NVDA shares were up $0.66 to $18.62 from the previous day close of $17.96 at last check.
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