Nomura Comes Out Of Meeting With Nvidia CEO Convinced Stock Is Now A Buy

Nomura analyst Romit Shah upgraded NVIDIA Corporation NVDA to Buy from Neutral and boosted his price target to $55 from $35.

The move came after the analyst met with NVIDIA CEO Jen-Hsun Huang. Shah assumed primary coverage on the company's shares in May and following an investor meeting, the analyst upgraded the shares.

Shah pointed out, "Nvidia managed to exceed revenue and EPS expectations in the April period despite notable weakness in China desktops, gaming seasonality and the migration to Pascal that included both a node shrink and architecture change."

Nomura analyst said management acknowledged that the backdrop should turn more favorable as Pascal ramps (higher ASPs), new installments of several well-received video games launch in the fall (i.e., Call of Duty, Battlefield, and Gran Turismo Sport), and autopilot programs go into production.

The brokerage boosted its fiscal year 2016 EPS estimation to $1.72 from $1.37 and for the following year, Shah boosted his expectation to $1.72 from $1.10.

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Posted In: Analyst ColorUpgradesPrice TargetAnalyst RatingsNomuraRomit Shah
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