By Sam Boughedda
NVIDIA's (NASDAQ:NVDA) price target was cut to $285 per share from $315 by Citi analyst Atif Malik in a research note Tuesday.
Malik trimmed the price target after cutting gaming estimates on "below seasonal PC demand and elevated retail inventory reflecting significant improvement in market supply/demand balance."
"We now model a 30% peak to trough decline in gaming sales vs 47% correction in 2018-19," wrote the analyst. "We maintain in-line Jul-Q estimates and lower Oct-Q estimates below Street. We maintain our data center sales as industry checks show hyperscalers remain server capacity constrained and believe stock’s multiple is supported by data center growth. We lower our CY22/23/24 adj EPS by 9%/7%/5% and cut TP to $285 from $315 using 30x P/E or in-line with large cap tech growth peer average times revised C24E EPS power discounted back."
Despite the change in price target, Citi maintained a Buy rating on the stock as it is "trading at 24x P/E vs 20x prior trough levels, showing majority of the gaming weakness is mostly priced-in."