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| Wednesday, October 04, 2006 |
Shares of graphics chips maker Nvidia Corp. shot up in Wednesday trading, after an analyst predicted there could be upside to 2007 estimates.
Friedman Billings Ramsey analyst Chris Caso reiterated an "Outperform" rating on the stock, and lifted his price target to $34 from $32.
"Our checks at Nvidia and ATI Technologies Inc. channel partners suggest that near-term conditions for NVDA remain strong, due to stabilizing personal computer build rates, as well as Nvidia design wins resulting from ATI Technologies roadmap uncertainty," Caso wrote in a note to clients. "We further think chipsets, notebooks, handsets, and PS3 provide enough growth drivers to comfortably meet 2007 estimates, with room for upside."
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In July, chip maker Advanced Micro Devices Inc. announced plans to acquire Nvidia competitor ATI Technologies Inc. in a deal valued at $5.4 billion.
Analysts polled by Thomson Financial expect the company to post, on average, earnings of $1.28 per share for the year on $2.91 billion in sales.
Caso's comments come on the heels of a less optimistic outlook from Pacific Growth Equities analyst Satya Chillara, who cut the company to "Neutral" from "Buy" on Tuesday because of what he believes is softening demand and increasing competition in the fourth quarter.
Shares of Nvidia, which have traded between $15.26 and $31.88 over the last year, rose $1.79, or 6.3 percent, at $30.09 on the Nasdaq. |
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