The tweet links to the Citron Research website, where a report entitled “NVIDIA: The Moment that Separates the Gamblers from the Investors” was posted earlier today. Will trade back to $130 before $180 If you think no comp READ Google whitepaper - Citron Research June 9, 2017 The buzz began when Citron’s Andrew Left, who rose to fame after successfully betting against companies like Valeant Pharmaceuticals, tweeted that NVDA was headed back down to $130:
Nvda target price citron free#
Still, Cramer conceded, "$130 is a lot more realistic a target.Shares of Nvidia Corporation ( NVDA - Free Report) fell more than 7% from their intraday peak, slumping nearly 2.5% from yesterday’s closing price, after the company was called out by notorious short-seller Citron Research on Friday. If one looks at the historical price appreciation of Intel over decades, "That would put Nvidia at $10,500” in share price, he said. "it’s not some dream stock, it’s a real company with real earnings that is going to do real things in the future,” but that still doesn’t merit the current stock price, he said.Ĭramer offered that “people are talking about how it’s the next Intel,” a claim that has been made repeatedly by Cramer himself.
"It’s not Tesla,” added Left, distinguishing Nvidia as a “real company” in contrast to the hype about Tesla Motors ( TSLA). “People just got carried away,” adding that Alphabet’s ( GOOGL) Google "put out a wonderful white paper on their TPUs,” a competing chip design that could potentially take away some need for Nvidia’s GPUs. "It’s no longer a stock,” continued Left. Left countered, “Does the stock have to go up every single day for it to be a great company?” to which Cramer replied, "I agree with you." "But it gets to a point, in a matter of two days, where it’s no longer a stock, it’s a casino."Ĭramer countered that the shares at $130 “still have a great deal of optimism."
"Two years ago I said don’t look at Ambarella ( AMBA), look at Nvidia, and you see how well that worked out,” said Left, defending his prior bullish stance on Nvidia. Left over at Citron is not convinced, and he spoke with CNBC’s Scott Wapner and Jim Cramer about how the stock has become merely a gamble, despite how much he likes Nevada. We reiterate our BUY rating and 12-month target price of $175 (raised from $140) on NVDA.
NVDA is also attractive on forward looking metrics such as discounted free cash flow valuation. The two-year forward PEG ratio on forecast FY18 and FY19 earnings is about 3.5-times, which we believe is deservedly higher than the 2.5 average for the peer group of Argus covered semiconductor companies. Valuation metrics are not getting too stretched, according to our analysis, because NVDA is growing revenue, earnings and cash flow much more rapidly than peers. Keller is not concerned about the surge in the stock this year, as the fundamentals back it up:įor any stock that has risen four-fold in a year, valuation must be carefully scrutinized. Argus’s Jim Keller, who has a Buy rating on the shares, writes today that “Nvidia has a clear strategy for successfully monetizing its graphics processing know-how in multiple markets, all of which are fast-growing and transformative."
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