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Analysts Upgrade: NVIDIA Corporation (NASDAQ:NVDA), AGCO Corp (NYSE:AGCO)

Pete Matthews , , , , , , , ,

NVIDIA Corporation (NASDAQ:NVDA) target raised to Street-high $1000 at BMO Capital Markets

BMO Capital Markets raises their NVDA tgt to $1000 from $750. Analyst Ambrish Srivastava commented, “As we look further out to the company’s data center business, we now see the business growing to a $32 billion business a few years out vs. our prior expectation of $25 billion. We also think that as software starts to become a bigger portion of the business, GM will continue to trend up, and we now see GMs of 75% for the business vs. our prior modeled 72%. We arrive at our target price of $1,000 using a similar discounted approach to the one we have been using but with a higher 40x P/E multiple vs. our prior 35x. We believe the multiple is reasonable, given the historical multiple range at which the shares have traded and in light of what appears to be an operating model that continues to get structurally better.”

NVDA stock is up by 1.40% by mid day session at $811.31.

AGCO Corp (NYSE:AGCO): An IDEAL Time for AGCO – Upgrading to Outperform – Credit Suisse (130.38)

Credit Suisse’s Jamie Cook states, “We believe the recent multiple contraction represents fears we are at peak, which we disagree with, and see limited downside to the multiple from current levels, in particular with the self-help story. We believe market concerns of limited upside to 2021, despite strong demand, reflecting continued supplier constraints and mat cost headwinds are reflected in the stock. “

“We view risk to supply chain as real but short term and reduce our Q2’21 EPS to $2.17 but maintain FY 2021 EPS of $8.75. We believe the order book and commentary for 2022 from DE and AGCO set the stock up well, erasing fears as we progress in the second half. Plus, with Precision AG as additive this cycle, the farm equipment names likely have better margin stories and pricing power relative to the rest of the group. Last, we believe channel inventories remain low as we exit 2021, setting 2022 up for strong operating leverage.”

AGCO stock gained 1.84% to $132.79.

Pete Matthews

Pete attended the University of Colorado and still calls the centennial state home. He chases trout in the summer and snowboards in the winter. He is fascinated with the markets and has a strong interest in nanocap stocks and crypto currency.