Shares of Nvidia Corp. (NVDA) surged 2.0% in premarket trading Tuesday, extending the previous session's 4.5% rally to a 16-month high, after analysts boosted their price targets ahead of the graphics chip maker's fiscal fourth-quarter earnings report due out on Thursday (). Oppenheimer's Rick Schafer reiterated his outperform rating and raised his price target to $300, which is 14% above Monday's closing price of $262.97, from $250. Schafer said Nvidia is "set up" to beat fourth-quarter analyst forecasts and provide a better-than-expected outlook, as the company has enjoyed a second-half rebound in core DC/gaming. He said while coronavirus is a near-term wildcard, but said "any transitory impacts are unlikely to impact [Nvidia's] structural growth/margin story." Deutsche Bank's Ross Seymore kept his rating at hold, but raised his stock price target to $220, which is 16% below Monday's close, from $190. Seymore said while he wouldn't be surprised if Nvidia delivers upside to fourth-quarter expectations and guidance, but said he believes this is already reflected in the share price. The stock, which is on track to open at the highest level seen during regular sessions hours since October 2018, has soared 26.3% over the past three months through Monday, while the PHLX Semiconductor Index has gained 9.6% and the S&P 500 has advanced 8.6%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
February 11, 2020 08:03 ET (13:03 GMT)
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