Nvidia Rises as Piper Jaffray Initiates Shares at Overweight
By: TheStreet | March 26, 2019 Nvidia is trading at attractive levels, according to Piper Jaffray, which placed a $200 price target on the stock.
Nvidia (NVDA - Get Report) shares were rising Tuesday after analysts at Piper Jaffray initiated the stock at overweight with a $200 price target.
Shares rose 3.7% to $180.15.
The firm acknowledged there are headwinds in the space, but analyst Harsh Kumar believes the gaming segment is primed for growth in the second half of the year. Kumar also sees room for significant margin expansion.
"Longer term, we believe gaming, along with data-center and automotive, are excellent markets, especially when considering its cutting edge technology and market-leading position. Specifically, we see the recently announced Mellanox acquisition as a strong addition to the company's platform. Nvidia is the largest GPU supplier in the world, and the company has a strong position in the autonomous vehicle market," Kumar wrote in his note.
Kumar said he believes that the company's margins bottomed in the fourth quarter. At its nadir, Nvidia's stock closed just above $127.
"Following the recent pullback, we believe the current price represents an excellent entry point, as we believe most of the risk has been removed from the stock," Kumar wrote. "With the recent earnings trough, we see earnings growing sequentially throughout the year and into fiscal 2021." Read Full Story »»» • DiscoverGold