Nvidia Shares Jump 3.8% As Canaccord Raises Price Target To $190 From $180

By Ciara Linnane Markets MarketWatch Pulse

Nvidia Inc. shares jumped 3.8% Monday, after Canaccord Genuity analyst Matthew Ramsay raised his stock price target to $190 from $180, or 17% above its current trading level. The graphics chip maker beat profit and sales expectations by wide margins, and raised its revenue outlook for the year, when it reported fiscal second-quarter results late Thursday. The stock, however, slumped on the news, as investors appeared to view the numbers as not quite strong enough to justify the 30% rally it had enjoyed in the last three months. "In the short term, shares were priced to perfection and we believe Friday's pullback will prove the entry point many investors have been looking for," Ramsay wrote in a note. "With the strong growth drivers intact and while acknowledging Y/Y growth compares will toughen in coming quarters, we reiterate our BUY rating and raise our price target from $180 to $190. BUY the pullback," said Ramsay. Nvidia stock has gained 52% in 2017, while the S&P 500 has gained 10%.

Continue Reading Below

Copyright © 2017 MarketWatch, Inc.