Nvidia (NVDA) Stock Price Target Raised at Canaccord

Canaccord upped its price target to $60 from $55 on Nvidia (NVDA) stock Monday.
By Annie Palmer ,

NEW YORK (TheStreet) -- Shares of Nvidia (NVDA) - Get Report  are rising 0.66% to $53.05 in afternoon trading as Canaccord increased its price target on the stock to $60 from $55 Monday. 

The firm maintained its "buy" rating on the Santa Clara, CA-based technology company due to its continued enterprise and automotive revenue growth and the recent launch of its Pascal graphics cards, Barron's reports. 

"We believe the NVIDIA gaming franchise is well positioned for sustained strong low-teens growth catalyzed by the launch of Pascal, despite a much improved product portfolio from GPU competitor Advanced Micro Devices (AMD) that is likely to regain discrete GPU share back toward 30% over the next couple years," the firm added in a note. 

Canaccord expects steady earnings growth into fiscal 2017 powered by HPC and virtual desktop revenue, as well as extended growth into the long term with the expansion of deep learning, virtual reality capabilities and improved GPGPU algorithms. These advancements should position Nvidia as not just a GPU supplier, but also a visual-computing service, the firm noted.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate NVIDIA CORP as a Buy with a ratings score of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

You can view the full analysis from the report here: NVDA

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