Shares of Nvidia Corporation NVDA are trading at around 33.3 times Piper Jaffray's 2020 estimated non-GAAP EPS, which undervalues the company given multiple catalysts ahead.
The Analyst
Piper Jaffray's Harsh Kumar initiated coverage of Nvidia with an Overweight rating and $200 price target.
The Thesis
Nvidia's stock could move higher given the company's exposure to multiple segments that are likely to experience growth, CNBC quoted the analyst as saying in a note. The gaming market, which experienced recent headwinds, is "primed for growth" in the back half of 2019 with a sustainable growth profile beyond the year.
Nvidia also has exposure to two long-term secular growth stories, including the data center and automotive markets. The company's strong product positioning coupled with the recent acquisition of Mellanox should help the company realize "significant" margin expansion and rapid earnings growth.
The research firm's $200 price target is based on a price-to-earnings multiple of around 38 times 2020 estimated EPS.
Price Action
Nvidia's stock was trading higher by 1.8 percent at $176.88 per share Tuesday afternoon.
Related Links:
Sell-Side Largely Bullish On Nvidia, With Eye On Anticipated Second-Half Recovery
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
