NVIDIA shares fall for a third straight session on Monday, Goldman Sachs maintains “Buy” rating on the stock ahead of earnings report

November 13, 2018 8:57 am

Goldman Sachs was reported to have maintained a “Buy” rating on NVIDIA Corporation (NVDA) with a price target of $283 before the company reports quarterly results on November 15th. The median forecast by analysts points to earnings of $1.72 per share on revenue of $3.24 billion.

NVIDIA shares closed lower for a third consecutive trading session on NASDAQ on Monday. It has also been the steepest daily loss since October 24th. The stock went down 7.84% ($16.13) to $189.54, after touching an intraday low at $188.68, or a price level not seen since October 30th ($185.62).

Shares of NVIDIA Corporation have retreated 2.05% so far in 2018 compared with a 1.97% gain for the benchmark index, S&P 500 (SPX).

In 2017, NVIDIA Corp’s stock rose 81.28%, thus, it outperformed the S&P 500, which registered a 19.42% return.

Goldman Sachs analyst Toshiya Hari expects “an inventory correction coupled with a more prolonged (and therefore less impactful in the near-term) product cycle in the core Gaming business”, which could “drive marginal downside.”

On the other hand, according to Hari, “any reduction to estimates is likely to be transient”, while the setup going into earnings remains “positive with NVDA’s NTM P/E sitting at a ~2.5 year low of 28.8x or down 48% from its recent high of 55x in late January 2018.”

According to CNN Money, the 35 analysts, offering 12-month forecasts regarding NVIDIA Corporation’s stock price, have a median target of $300.00, with a high estimate of $400.00 and a low estimate of $120.00. The median estimate represents a 58.28% upside compared to the closing price of $189.54 on November 12th.

The same media also reported that 21 out of 35 surveyed investment analysts had rated NVIDIA Corporation’s stock as “Buy”, while 11 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for NVIDIA Corporation (NVDA) are presented as follows:

Central Pivot Point – $208.04
R1 – $215.04
R2 – $224.41
R3 – $231.41
R4 – $238.41

S1 – $198.67
S2 – $191.67
S3 – $182.30
S4 – $172.93

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