Nvidia gets rare Wall Street downgrade on Valuation Concerns
Posted: Jul 05, 2024
- New Street Research downgraded Nvidia stock ($NVDA) due to valuation concerns after a June rally - Analyst Pierre Ferragu believes upside is limited, with growth slowing to a mid-teen rate - Nvidia shares have surged 159% this year, but have pulled back recently - Only 3 out of 41 analysts covering the stock say it is a hold or sell - New Street set a $135 price target with 5% upside, assuming a 35 times multiple - Analysts believe Nvidia may see a lower price-earnings multiple in the future - Nvidia's franchise quality is intact, but they would only buy again on prolonged weakness.
๐จ Reddit sentiment: mixed/positive - While there are some concerns about liquidity and valuation, many comments are bullish on Nvidia, indicating a sentiment that leans more positive. Summarized comments: - We need you guys to sell some because we need leverage for a bulk purchase - Obviously looking for liquidity - Imagine selling Nvidia ๐ - Never can imagine. But they can go F themselves. I will only buy more - Every other tech stock is trading at a forward P/E of close to 30. But NVDA, an actual growth company, has a forward P/E of 46 and everyone says it is overvalued? - Pelosi just dropped 1-5 mill into Nvidia. While sheโs not always right, it indicates they might have a big government contract Stock tickers discussed: $NVDA
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