Shares of Nvidia Corp. were edged up 0.1% in premarket trading Monday, after Benchmark analyst Ruben Roy restated his buy rating on the graphics chip maker while raising his stock price target to $275 from $240, citing expectations of a recovery to "strong revenue and earnings growth" in fiscal 2021. The new price target makes Roy the most bullish of the 41 analysts surveyed by FactSet, as it tops SunTrust Robinson Humphrey analyst William Stein's previous high target of $273. The average rating is the equivalent of buy, and the average target is $234.92, according to FactSet. "We expect [Nvidia] to benefit from a re-acceleration of data center spending, coupled with an improving demand environment for GPUs [graphics processing units] in gaming end markets," Benchmark's Roy wrote in a note to clients. He projects fiscal 2021 earnings-per-share growth of 34% and revenue growth of 20%, while current FactSet consensus estimates imply growth of 31% for EPS and 20% for revenue. The stock has soared 74.0% year to date through Monday, while the PHLX Semiconductor Index has hiked up 59.7% and the S&P 5090 has advanced 28.5%. Read More...
Shares of Nvidia Corp. were edged up 0.1% in premarket trading Monday, after Benchmark analyst Ruben Roy restated his buy rating on the graphics chip maker while raising his stock price target to $275 from $240, citing expectations of a recovery to “strong revenue and earnings growth” in fiscal 2021. The new price target makes Roy the most bullish of the 41 analysts surveyed by FactSet, as it tops SunTrust Robinson Humphrey analyst William Stein’s previous high target of $273. The average rating is the equivalent of buy, and the average target is $234.92, according to FactSet. “We expect [Nvidia] to benefit from a re-acceleration of data center spending, coupled with an improving demand environment for GPUs [graphics processing units] in gaming end markets,” Benchmark’s Roy wrote in a note to clients. He projects fiscal 2021 earnings-per-share growth of 34% and revenue growth of 20%, while current FactSet consensus estimates imply growth of 31% for EPS and 20% for revenue. The stock has soared 74.0% year to date through Monday, while the PHLX Semiconductor Index has hiked up 59.7% and the S&P 5090 has advanced 28.5%.
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