New Street Research Upgrades Nvidia to Buy as Crypto-fueled Weakness is Likely Short-lived
2022.04.13 18:51
New Street Research Upgrades Nvidia (NVDA) to Buy as Crypto-fueled Weakness is Likely Short-lived
New Street Research analyst Pierre Ferragu upgraded Nvidia (NASDAQ:NVDA) stock to Buy with a $270.00 per share price target.
The analyst argues that the crypto-related weakness is no longer seen as a reason not to own NVDA shares.
“A weakness driven by crypto would be limited, short-lived, and only an opportunity to add to positions,” Ferragu said in a client note.
Ferragu sees three potential scenarios from here:
- Gaming demand remains very strong, gaming revenues progressively decelerate in 2022 and 2023, which is mostly in line with the consensus;
- Gaming demand normalizes to push gaming revenues 15% below consensus;
- Gaming demand normalizes to push gaming revenues 5-10% below consensus.
Another positive is that the near-term visibility remains “very strong” in the context of a strong secular outlook for gaming, visualization, and datacenter.
“This limits downside risks beyond a crypto correction,” the analyst added.
Nvidia stock price is up 2.5% today.
By Senad Karaahmetovic
