Nvidia Stock: UBS, Deutsche Bank Raise Price Targets

Nvidia (NVDA) plans to announce its earnings for Q3 of fiscal 2020 on November 14 after the market closes. In the third quarter, analysts expect Nvidia’s revenue to fall about 8.2% YoY (year-over-year) to $2.92 billion. The consensus estimates suggest that the company will likely post adjusted EPS of $1.58—down 14.1% YoY.

Nvidia stock upgraded by analysts

Today, Nvidia stock received upgrades from two Wall Street analysts ahead of the company’s third-quarter earnings report. Deutsche Bank raised its target price for the stock to $190 from $160. Deutsche Bank reiterated its “hold” rating on the stock.

Today, MarketWatch reported that Deutsche Bank analyst Ross Seymore cited “expectations that optimism over the graphics chip company’s ability to address a wide array of rapidly growing sectors will ‘remain high’ into next year.” The report added that Seymore “sees potential for ‘modest upside’ in its Q3 results, with Q4 results likely seeing positive follow-through.”

UBS also raised its price target for Nvidia stock from $195 to $240. According to TheFly, UBS analyst Timothy Arcuri said, “Data is starting to play out to prove strength in gaming as ray tracing becomes standard and in the data center as the new 7nm product should be announced next week.”

Analysts’ views

Nvidia is covered by 39 Wall Street analysts. Of these, 27 analysts rate it as a “buy,” nine analysts rate it as a “hold,” and three analysts rate NVDA as a “sell.”

Analysts’ mean price target on Nvidia stock stands at $199.70, which implies a 4% loss from the current level of $207.78.

Stock performance

Today, Nvidia stock was up 0.53% at $208.89 as of 12:36 PM EST. On November 8, the stock fell 0.3% and closed at $207.78, with a market capitalization of $126.5 billion. The stock is trading 1.9% below its 52-week high of $211.70 and 67% above its 52-week low of $124.46. It has also gained 55.6% year-to-date.

Based on the last closing price, NVDA’s moving averages are as follows:

  • The stock is 3.1% above its 20-day moving average of $201.58.
  • Nvidia stock is 10.7% above its 50-day moving average of $187.70.
  • The stock is 18.4% above its 100-day moving average of $175.52.

Nvidia’s 14-day MACD is 3.43, which suggests an upward trading pattern. The chipmaker has a 14-day relative strength index (or RSI) level of 66, which suggests that the stock is approaching the overbought level.

Among Nvidia’s peers in the chip space, Micron, Intel, and Advanced Micro Devices have risen 48.7%, 24.2%, and 96.6%, respectively, year-to-date.

Please read Was Jim Cramer Right to Back Nvidia over Microchip? and Nvidia Stock Looks Strong Ahead of Earnings Release to learn more.