NVIDIA Corp was raised to a ‘Buy’ from a ‘Neutral’ rating as higher revenues are expected in its future, according to Broadpoint.AmTech analyst, Doug Freedman.
Freedman said demand, particularly in GPU and chipsets, and higher order rates in March and April will give upside to the shares as the company moves forward.
“We believe street estimates need to go materially higher to reflect a higher revenue base and an EPS snapback due to earlier recovery to an $800M-$900M/Q run rate.”
Recently, Santa Clara, Calif.-based NVIDIA Corp reported a fourth quarter revenue was $481.1 million, down from $1.2 billion for the fourth quarter of fiscal 2008, a decrease of 60 percent.
For the twelve months ending January 25, 2009, revenue was $3.4 billion compared to $4.1 billion for the twelve months ended January 27, 2008, a decrease of 16 percent.
Freedman set a price target of $13, up from $7 for NVIDA.
NVIDIA Shares fell Wednesday on 10 cents, or 1.02 percent, to $9.68 in afternoon trading