Oppenheimer Remains Cautious on NVIDIA Corporation Following Meeting with CFO and Director of IR
Oppenheimer analyst Rick Schafer came out with a research report on NVIDIA Corporation (NASDAQ:NVDA) after sitting down with CFO Colette Kress and Director of IR Arnaub Chanda during Day 1 of the 13th Annual Semiconductor Bus Tour. The analyst maintained a Perform rating on the stock, and no price target was provided. Shares of NVDA are currently trading at $21.82, up $0.07, or 0.32%.
Schafer commented, “Today, revenue and growth within auto comes exclusively from clusters/infotainment; however, longer term we see NVDA’s core visual computing expertise as a key enabler of autonomous driving features, which have the added benefit of driving better ASPs.” Furthermore, “Efforts in Enterprise continue to impress as NVDA becomes mission-critical. GRID could become more significant over time given the 500M user base; we believe GRID can exit CY15 at ~5% of sales vs. ~1% today.”
“In light of well understood near-term PC challenges, we believe NVDA’s commitment to shareholder returns should support shares as the company awaits a new-product fueled top-line re-acceleration. However, with most of these opportunities just beginning to take root, we remain sidelined here,” the analyst added.
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 28.1% and a 81.9% success rate. Schafer is ranked #10 out of 3614 analysts.
Out of the 14 analysts polled by TipRanks, 6 rate Nvidia stock a Buy, 6 rate the stock a Hold, and 2 recommend Sell. With a return potential of 4.31%, the stock’s consensus target price stands at $22.77.