NVDA, CMG Stocks Lifted By Ambitious Analyst Upgrades

Another NVDA analyst waxed optimistic on the company's gaming business

Aug 15, 2018 at 9:45 AM
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Sentiment in the options pits was already bullish on Nvidia Corporation (NASDAQ:NVDA) ahead of the company's post-close earnings release tomorrow, Aug. 16, and now there's upbeat attention coming from the analyst community. Wells Fargo issued a big upgrade on NVDA stock this morning, raising its rating on the semiconductor issue to "outperform" from "underperform," and boosting its price target to $315 from $140. The upgrade was based on the company's strong position in gaming and artificial intelligence -- familiar focal points of Wall Street.

There are still a number of Nvidia bears in the analyst community, illustrated by the equity's eight "hold" ratings. At the same time, the average 12-month price target stands all the way up at $295.67. NVDA shares have rallied more than 35% since the start of the year, last seen slightly higher at $261.80, not too far from their June 14 record high of $269.20.

Another stock receiving positive analyst attention is Chipotle Mexican Grill, Inc. (NYSE:CMG). Morgan Stanley upgraded CMG shares to "overweight" from "equal-weight" and set a $600 price target -- almost 22% above yesterday's close at $493.32. The brokerage firm said it's still early into the company's turnaround while also mentioning the new focus on digital initiatives. Meanwhile, Citigroup raised its price target on Chipotle to $573 from $506.

As such, the equity is up more than 2% today, trading above $500 for the first time since March 2016, topping out at $505.98 so far. There's a chance we could continue to see CMG bull notes trickle through, since 17 of 24 analysts have "hold" or worse ratings on the shares. Plus, volatility expectations remain unusually low.


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