2 Reasons Barclays Expects Record Highs for Nvidia Stock

By Katie Coburn / October 04, 2017 / www.schaeffersresearch.com / Article Link

Analysts are weighing in on video game maker Electronic Arts Inc. (NASDAQ:EA), semiconductor stock NVIDIA Corporation (NASADQ:NVDA), and biotech CytomX Therapeutics Inc (NASDAQ:CTMX). Here's a quick roundup of today's bullish brokerage notes on shares of EA, NVDA, and CTMX.

Electronic Arts Stock Dips Despite Bullish Analyst Note

Electronic Arts stock is down 1.2% to trade at $116.55, despite bullish attention from Barclays. The brokerage firm started coverage on the video game stock with an "overweight" rating and a price target of $129 -- in uncharted territory. Analysts there expect the company to benefit from the gaming community's shift to digital products.

EA shares have been climbing the charts this year, adding roughly 50% in value in 2017. Recently pulling back from an Aug. 31 record high of $122.79, the security bounced off its 100-day moving average. Meanwhile, all but three of the 17 analysts following the stock rate it a "buy" or better, with not a single "sell" in sight.

Analyst Predicts Record Highs for NVIDIA Stock

Another security on Barclays' radar today is NVIDIA stock, last seen trading 0.5% lower at $178.55. The brokerage firm raised its price target to $200 from $140 -- record-high territory -- citing optimism for the company's position in the cryptocurrency market and the launch of its Volta-based graphic processing units (GPU). This is much of the same for the semiconductor stock, which has added 162% in value over the past year and hit a record high of $191.20 on Sept. 18. Not all analysts are convinced, however, as half of the 24 brokerage firms following the equity rate it a "hold" or worse. What's more, NVDA's average 12-month target price sits at $164.23 -- equating to an 8% drop from current levels.

Amgen Deal Sends CytomX Stock to Fresh Highs

CytomX Therapeutics stock ranks among the top percentage gainers on the Nasdaq today, after the biotech announced its strategic collaboration with Amgen to co-develop new cancer treatments. As part of the deal, Amgen will pay CytomX $40 million and buy $20 million worth of its stock. In response, Wedbush and Nomura raised their price targets on CTMX stock to $37 and to $44, respectively.

After hitting an annual high of $24.67 earlier, the shares are trading at $23.42, up 23.3% on the day. The biotech stock has now more than doubled on a year-to-date basis, and short sellers are jumping ship. Short interest on CTMX decreased 4.7% during the last reporting period to just 1.22 million shares. It would still take more than three sessions to cover these shorted shares, however, at the equity's average daily trading volume.

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