In a research report released Wednesday, Roth Capital analyst Krishna Shankar reiterated a Buy rating on Nvidia Corporation (NASDAQ:NVDA) with a $24.00 price target, as the company is scheduled to report its 4Q:FY15 earnings results today after the market close.
Shankar noted, “We expect NVDA to report in-line 4Q15 results with revenues/GAAP EPS of $1.2 billion/$0.27 with gross margins of 55% due to a rich product mix. We expect seasonal guidance for flattish revenues sequentially. We are positive on NVDA’s growth prospects in high-end gaming PC graphics, professional graphics, Tesla high-performance computing, and enterprise virtualization with GRID computing and cloud appliances. We believe that NVDA’s Tegra K1 and X1 mobile processor for high-end smartphones/tablets, automotive, and game platforms will also drive growth.”
The analyst added, “We maintain our FY15 (Jan 2015) revenues/GAAP EPS estimates of $4,632.6 million/$1.05 and our FY16 (Jan 2016) estimates of $4,924.8 million/$1.14. We maintain our Buy rating and target price of $24 based on 21x our FY16 GAAP (calendar 2015) EPS estimate of $1.14 using a 1.4x PEG ratio relative to estimated 15% secular earnings growth.”
NVIDIA Corporation designs, develops, and markets three dimensional (3D) graphics processors and related software. The Company’s products provide interactive 3D graphics to the mainstream personal computer market.