In a research note sent to investors today, Oppenheimer analyst Rick Schafer maintained a Perform rating on Nvidia Corporation (NASDAQ:NVDA), following meeting with NVDA’s CFO, Colette Kress, and Director of IR, Raj Santhanam at CES 2015. No price target was provided.
Schafer wrote, “Management’s tone remains confident/optimistic, as expectations for double-digit growth in Gaming GPUs should more than offset falling attach rates in the PC OEM segment. While still a sub-5% part of NVDA’s business, Automotive continues to be an area of intense focus as the car becomes increasingly electronic and OEMs look to technology to differentiate their offerings.”
Furthermore, “We believe NVDA’s efforts to dislocate itself from traditional PC graphics is a wise one longer term, but recognize near- to mid-term the company remains tied to the “flattish-at-best” PC segment. After playing “catch up” over the past two years, NVDA’s capital allocation strategy will return to a normalized level going forward, with priority on maintaining flattish share count and growing the dividend.”
The analyst concluded, “We walked away from our meeting incrementally more positive on NVDA’s business outlook; however, we look to more earnings leverage to emerge before turning more positive.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Rick Schafer has a total average return of 15.8% and a 72.0% success rate. Schafer is ranked #216 out of 3429 analysts.