Nvidia shares got a downgrade from analysts at Wedbush to neutral from outperform, on valuation concerns. However, Wedbush analysts boosted price target on the semiconductor company’s stock $300 a share from $220 a share.
According to a note to investors, while Wedbush analysts remain “very bullish” on Nvidia's near term prospects as well as longer term opportunities particularly around Artificial Intelligence, they won’t be able to justify raising the multiple to a level that corresponds to an Outperform rating.
Wedbush said a 67X price target on Nvidia to maintain the outperform rating cannot be justified. Wedbush is incorporating a 40X multiple for Nvidia's future earnings to calculate its price target for the shares.