Nvidia: Wedbush no longer a buyer

(CercleFinance.com) - Despite raising its target price for the share from 220 dollars to 300 dollars (current price: 300 dollars, -1% in pre-market trading), Wedbush has downgraded its rating on Nvidia shares from "Outperform" to "Neutral", citing valuation factors rather than any negative catalyst for the stock.


"While we remain very bullish on both NVDA's near term prospects and longer term opportunities (particularly around AI), we simply find ourselves unable to justify lifting our multiple to levels that would continue to justify an OUTPERFORM," the broker says.

Analysts say that while Nvidia shares are trading at around 55x the group's 2024 numbers, they would need to raise this multiple, which is used to determine its target price, to around 67x to justify maintaining their Outperform rating on the stock.



Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.