|Goldman raises NVDA to $171:|
Nvidia To See Lift From Nintendo Switch Sales, Gets Price-Target Hike
Investment bank Goldman Sachs raised its price target on Nvidia ( NVDA) stock on Wednesday on expectations for higher sales of Nintendo's ( NTDOY) Switch game console.
XAutoplay: On | Off Nvidia makes the graphics processor for the hybrid gaming device, which can be used in the living room with TV screens and on-the-go with a detachable tablet screen. The Nintendo Switch went on sale March 3 and its supply has been constrained as the Japanese company tries to keep up with strong demand.
Goldman Sachs analyst Toshiya Hari reiterated his buy rating on Nvidia stock and upped his price target to 171 from 165.
Nvidia rose 0.2% to 151.72 on the stock market today. Nvidia hit a record high of 168.50 intraday Friday.
"We raise fiscal year 2018-20 estimated revenue by 0.3-1.4% and revise (earnings) 1-3% as we reflect higher Nintendo Switch unit assumptions," Hari said in a report.
He is now assuming Switch sales of 15.2 million and 15.5 million units in fiscal 2018 and 2019, up from 6.5 million and 7.5 million previously.
Nvidia and Nintendo are both at the E3 video game conference in Los Angeles this week.
Santa Clara, Calif.-based Nvidia has a major business supplying graphics engines for video game consoles and high-end gaming PCs. It also has a fast-growing business supplying processors for data centers and an emerging business in processors for self-driving cars.
"Of the three key segments (gaming, data center and auto), the market has yet to fully appreciate the growth potential in gaming and data center, in our view," he said.