Nvidia: Deutsche Bank raises target price ahead of results
(CercleFinance.com) - Deutsche Bank analysts have raised their target price for the graphics chipmaker Nvidia from 450 dollars to 500 dollars ahead of the company's quarterly earnings report next week.
The broker said it expects the US chip company to deliver a "solid beat" and forecasts above Wall Street estimates, driven by an expectation of an extra week of revenue that may not be fully integrated in the consensus.
"While Nvidia continues to hit on all cylinders in an otherwise challenging macro environment, we believe much of this goodness is reflected in its share price (...) and at such a valuation fear that an inevitable pause in growth (...) appears to be insufficiently discounted", DB added in a note.
Consequently, the broker retains a "hold" rating on the stock, until a more favourable risk/reward becomes apparent.
Nvidia will report its third-quarter results after the market closes on Wednesday 18 November.
The shares were up almost 2% on the Nasdaq on Thursday.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker said it expects the US chip company to deliver a "solid beat" and forecasts above Wall Street estimates, driven by an expectation of an extra week of revenue that may not be fully integrated in the consensus.
"While Nvidia continues to hit on all cylinders in an otherwise challenging macro environment, we believe much of this goodness is reflected in its share price (...) and at such a valuation fear that an inevitable pause in growth (...) appears to be insufficiently discounted", DB added in a note.
Consequently, the broker retains a "hold" rating on the stock, until a more favourable risk/reward becomes apparent.
Nvidia will report its third-quarter results after the market closes on Wednesday 18 November.
The shares were up almost 2% on the Nasdaq on Thursday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.