Bank of America has published a research report on NVIDIA Corporation NVDA and has downgraded the company from Buy to Neutral based on the expectation that the company will be facing higher costs near-term.
In the report, Bank of America writes, "We downgrade Nvidia from Buy to Neutral as the company faces near-term (higher 28nm costs/supply) and longer-term (mobile processor competition, Ultrabooks use integrated graphics) risks that make it harder to outperform the sector. We lower FY13/14E (~CY12/13E) EPS from $1.04/$1.22 to $0.71/$0.91. Ex stock comp, we model $0.94/$1.15 in pro-forma EPS, and maintain our $16.50 Px Tgt. We model $440mn in FY13 Tegra mobile processor sales, well below Nvidia's outlook of at-least $540mn. Nvidia guided 1FQ13 sales to $915mn (midpt), below our $926mn and Street's $940mn expectations. Solid balance sheet and cash flow provides cushion."
NVIDIA is currently trading up $0.14 from yesterday's $16.17 closing price.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in