Standard & Poor’s analyst Clyde Montevirgen has cut his rating on Nvidia to Strong Sell from Hold, while keeping his $9 price target on the stock, reports “Barron’s” (http://blogs.barrons.com/techtraderdaily/2010/08/30/nvidia-sp-downgrades-to-strong-sell-keeps-9-target-price/).
“Considering our concern about weakening consumer PC demand and anticipated market share loss as Apple shifts vendors, we are more confident in our forecast for sub-industry growth over the next few quarters, and believe the shares will under perform,” he writes in a research note to clients. ““Although its Tegra line provides growth opportunities, we are cautious of sales following customers’ initial product ramps. Meanwhile, the share price implies a forward P/E multiple that is currently above the industry-average, which we do not think is justified.”