NVIDIA shares gain the most in a month on Monday, Credit Suisse initiates coverage on the stock with “Outperform” rating

November 27, 2018 8:17 am

Credit Suisse initiated coverage on NVIDIA Corporation (NVDA) with an “Outperform” rating and also assigned a price target of $225 on the stock.

NVIDIA shares closed higher for a second consecutive trading session on NASDAQ on Monday. It has also been the sharpest daily surge since October 30th. The stock went up 5.55% ($8.05) to $153.05, after touching an intraday high at $153.45, or a price level not seen since November 21st ($155.30).

Shares of NVIDIA Corporation have retreated 20.90% so far in 2018 compared with a 0.01% dip 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.

“While the recent F1Q19 guide was disappointing, we see the reset and ~50% decline in shares over the past 8 weeks as providing an extremely compelling entry point,” Credit Suisse’s team of analysts wrote in a note to clients.

Credit Suisse pointed out that Nvidia’s latest earnings report was “disappointing” and that the tech company would likely require time to turnaround.

On the other hand, Credit Suisse said it expected continued strength in Nvidia’s data center business and further advancement in the AI area.

Credit Suisse also expects Nvidia to earn $7.48 per share during FY19 compared with a consensus estimate of $7.29 per share. As far as FY20 is concerned, Credit Suisse said it projected earnings of $9.30 per share compared with a consensus estimate of $8.78 per share.

According to CNN Money, the 34 analysts, offering 12-month forecasts regarding NVIDIA Corporation’s stock price, have a median target of $245.00, with a high estimate of $400.00 and a low estimate of $120.00. The median estimate represents a 60.08% upside compared to the closing price of $153.05 on November 26th.

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”.

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 – $146.71
R1 – $160.11
R2 – $175.22
R3 – $188.62
R4 – $202.02

S1 – $131.60
S2 – $118.20
S3 – $103.09
S4 – $87.98

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