Nvidia Can't Be Touched

Analysts at Argus remain unconcerned with perceived risks related to Nvidia's stock, and reiterated its 'Buy' rating.
By Giovanni Bruno ,

Shares of semiconductor bellwether Nvidia (NVDA) - Get Report were rising over 6% during trading on Monday afternoon following a number of bullish calls in favor of the company.

One came from Argus Research analyst Jim Kelleher who reiterated his "Buy" rating on the stock with a $175 price target. Last week, shares of Nvidia slumped despite a quarterly beat, but the sell-off was just part of "broad technology profit-taking as global tensions worsen," Kelleher wrote in a note obtained by Barron's.

He remains unconcerned regarding Nvidia's growth, noting that "Nvidia is growing with sufficient speed to continue running ahead of Street forecasts."

"Although growth is slowing as the law of large numbers kicks in, NVidia's forecast growth is still substantially greater than that of peers or the broad market," he added.

Kelleher also remains confident concerning Nvidia's valuation. "Valuation metrics are not getting too stretched, according to our analysis, because NVDA is growing revenue, earnings, and cash flow much more rapidly than peers."

Similar calls from across Wall Street regarding the chipmaker included Canaccord Genuity's Matthew Ramsay who reiterated his "Buy" rating on the stock and raised his price target to $190 from $180.

UBS' Stephen Chin echoed a similar call and also reiterated his "Buy" rating on shares of Nvidia while hiking his price target to $180 from $168, citing quarter-over-quarter growth and improving gross profit margins.

Goldman Sachs told clients that Nvidia is a must own stock in 2018, arguing that rising interest rates will depress earnings growth and in turn place a premium on the company's valuation.

But, not all investment firms are as high on the company. MKM Partners believes its current valuation is at an "extreme" as growth rates year-over-year slow in important end markets. The firm reiterated its "Neutral" rating on the stock with a $120 price target.

Nvidia is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells NVDA? Learn more now.

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