Nvidia (NVDA) Stock Rating Upgraded at Canaccord Genuity
NEW YORK (TheStreet) -- Nvidia (NVDA) - Get Report stock was upgraded to "buy" from "hold" at Canaccord Genuity on Monday.
The Santa Clara, CA-based company's transformation from a GPU supplier to a diverse visual computing company is nearing completion, according to Canaccord.
Nvidia targeted the gaming, enterprise, cloud and automotive sectors as potential growth markets. Now these areas represent more than 85% of its revenue, Canaccord said.
"While we have applauded and appreciated the company's transformation, our prior rating and price target have underestimated the strength of key themes driving NVIDIA's strong recent results including augmented/virtual reality, eSports, and automotive display/control, as well as the company's position within these markets," the firm added.
Canaccord raised its price target on Nvidia stock to $35 from $30.
Shares of Nvidia were up by 1.01% to $30.10 in pre-market trading on Monday.
Separately, TheStreet Ratings team rates NVIDIA CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
We rate NVIDIA CORP (NVDA) a BUY. 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, reasonable valuation levels, solid stock price performance and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 10.8%. Since the same quarter one year prior, revenues slightly increased by 6.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 6.16, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 41.93% and other important driving factors, this stock has surged by 54.78% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NVDA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 42.2% when compared to the same quarter one year prior, rising from $172.97 million to $246.00 million.
- You can view the full analysis from the report here: NVDA
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.