Monday, May 14, 2018

More Analyst Reaction to NVIDIA's Earnings Report (NVDA)

Following up on Friday's "NVIDIA Earnings Report: Analysts React (NVDA)".
From Bloomberg:
...Here’s what analysts are saying about the report:

Bernstein ( Stacy Rasgon)
Nvidia’s 1Q results were “once again strong, well ahead of consensus, partially on strong crypto-specific GPUs but also with upside from gaming and datacenter and very strong gross margins.”
“The biggest controversy on the call continued to be the trajectory of gaming into the second quarter and in particular what it might imply for datacenter growth given the odd seasonality in the first half of the year.”
Bernstein “believes guidance implicitly suggests another quarter of solid datacenter growth to come.”
Maintains outperform and raises price target to $300 from $275

Morgan Stanley ( Joseph Moore)
“Growth remains strong across all segments.... Stronger-than-expected cryptocurrency mining in April will continue to inject noise into the story.”
“Guidance for a 65 percent decline in crypto in the July quarter significantly derisks the story, taking it down to a largely irrelevant 3 percent of sales.”
The analysts “expect new gaming products to more than offset further declines.”
Maintains overweight rating and raises price target to $273 from $258

Stifel ( Kevin Cassidy)
“Nvidia turned in a solid beat” compared to the estimates, “though much of the beat came from the cryptocurrency-related revenue.”
“Due to investors’ concerns around the volatility of the cryptocurrency market, the company may not get full credit for the beat to estimates.”
“The company is executing extremely well and we believe it is fairly reflected in the Nvidia share price and valuation.”
Maintains hold and raises price target to $243 from $220

Goldman Sachs ( Toshiya Hari)
“The company met what we believe were heightened investor expectations for the datacenter business.”
“With crypto now de-risked, in our view, and the new product launch in gaming ahead of us, we see positive risk-reward and would thus recommend investors to buy the stock.”
Reiterates buy and raises price target to $310 from $275...

The stock is up $1.62 at $256.15 and folks do not appear enthusiastic.