Friday, November 11, 2016

NVIDIA: Jeffries, RBC Capital Markets; MKM Raise Price Targets, Stock Soars 22% (NVDA)

This is just a quick hit, we'll be back with more later this morning.
The stock is up $15.02 (22.16%) at $82.79.
First up,

RBC Capital Markets, Jefferies raise Nvidia to $95 targets
  • Following the company's highly positive Q3 report.
  • Mitch Steves at RBC Capital Markets, restating an Outperform and moving from a prior $80 target, cites continuing strength in datacenter segment performance (revenue $240M; +193% Y/Y, +54% Q/Q), opportunities in deep learning and robotics sectors along with a secular growth story driven by virtual reality, autonomous driving and infotainment, and deep learning and artificial intelligence.
  • Jefferies' Mark Lipacis highlights Nvidia's core gaming business (revenue $1.24B, +63% Y/Y), though notes datacenter and auto (revenue $127M, +61% Y/Y) segments represent young growth areas he expects to contribute to further upside surprises going forward. Reiterates Buy rating, adjusts similarly from an $80 target, and forecasts $5 of EPS power in 3 years.
From StreetInsider:

NVIDIA (NVDA) PT Raised to $95 at Jefferies
Jefferies analyst Mark Lipacis reiterated a Buy rating and lifted its price target on NVIDIA (NASDAQ: NVDA) to $95.00 (from $80.00) following blow-out results.
commented, "OctQ revs/EPS of $2 billion/$0.83 beat consensus by 19% and $0.27, implying an upward bias of ~$1 on consensus FY18 EPS, and reinforcing our thesis that NVDA is a play on 4 secular trends. Its core business, Gaming (62% of sales), grew by 63% YY, but we think its Datacenter (up 193%YY) and Auto (up 61% YY) businesses, now 18% of total, are in nascent growth stages and will continue to drive upside surprises. We estimate $5 of EPS power in 3-yrs."
 And from Benzinga:

NVIDIA's Blowout Quarter: 'Machine Learning Is Like A Quicksand'
..."Machine Learning is like a quicksand, once a company decides to embark on the Intelligent Apps…there is no turning back," Global Equities Research's Trip Chowdhry said in a report.

Chowdhry maintained an Overweight rating on Nvidia, with a 12-18 month price target of $85....MORE

...Spectacular Guidance
NVIDIA Corporation NVDA 22.47% reported its October quarter results ahead of expectations and announced another “spectacular” guidance, MKM Partners’ Ian Ing said in a report. He added that the company achieved strong growth in gaming and data center revenues and that “significant legs remain to these current growth drivers.”

Analyst Ing maintains a Buy rating on NVIDIA, while raising the price target from $74 to $87....MORE
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