CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our 12-month target to $840 from $700, on P/E of 30x our CY 25 EPS view, above peers/ below historical. We up our FY 25 (Jan.) EPS estimate to $23.40 from $20.58 and FY 26 to $28.00 from $23.76. NVDA posts Jan-Q EPS of $5.16 vs. $0.88, beating the $4.64 consensus. Sales rose 265%, above our view, led by data centers (+409%; 83% of sales) as compute revenue grew over 5x and networking tripled (+$13B annual run rate). While supply is improving, we do expect constraints as next gen products ramp (H200 in Apr-Q and Blackwell by year-end) given elevated demand. China sales fell significantly but we think it helps de-risk NVDA’s revenue (mid-single % of data centers vs. 20%-25% historically). We see a slew of growth drivers that will support demand in CY 24/CY 25 and beyond through TAM expansion (Sovereign AI, AI factories), product launches at higher price points, and software momentum while mid-70’s gross margin is sustainable. We see +$100B in FCF over the next two years (+$45B in FY 25; +$55B in FY 26).