Roth Capital Weighs in on Glu Mobile Inc. (GLUU) and NVIDIA Corporation (NVDA) Following a Game Release and Earnings

By Shira Gonen

Roth Capital analysts weighed in on video game maker Glu Mobile Inc. GLUU and graphics tech firm NVIDIA Corporation NVDA, following the release of game Kendall and Kylie and Q4 earnings, respectively. While one analyst is bullish on Glu due to the successful launch of K&K, the other remains neutral on NVIDIA, citing earnings growth and a license expiration.

Glu Mobile Inc.

Analyst Darren Aftahi weighed in today on Gluu after the company released its Kendall and Kylie game. The analyst cites stellar performance in terms of U.S. iPhones, reaching the top 8 grossing free game status in its first day, closely resembling the performance of Kim Kardashian:Hollywood , one of its top games. As a result, the analyst believes "this game will have a material impact on Glu's P&L." However, he questions the "longevity and sustainability", though raises his price target for the stock and revenue estimates for 1Q16, believing that Glu did not take into account the potential of success of K&K.

The analyst reiterated a Buy rating on the company, raising his price target from $5 to $5.25. Darren Aftahihas a 53% success rate recommending stocks with an average loss of (3.8%) per rating.

According to TipRanks' statistics, out of the 5 analysts who have rated GLUU in the past 3 months, 4 gave a Buy rating while 1 remains on the sidelines. The average 12-month price target for the stock is $4.05, marking a 6% upside from current levels.

NVIDIA Corporation 

Analyst Brian Alger of Roth Capital weighed in yesterday on NVIDIA Corporation after the company posted Q4:2015 earnings yesterday after market close. The analyst cites "impressive" results in all four of NVIDIA's key segments. Most notably, its Gaming and Automotive segments displayed 37% and 75%y/y growth, respectively, while its Pro Visualization and Data center segments also displayed y/y growth. GAAP EPS for the quarter came in at $0.34, compared to his $0.29 estimate, while revenues of $1.4 billion beat his own estimates by $93 million.

The analyst notes surprised regarding the 7% y/y growth in Pro Visualizing, citing a "challenging enterprise spending environment" in the last quarter. The analyst notes that the Gaming, Datacenter, and Automotive should "fuel expansion" into 2017.  The analyst notes particular bullishness on the automotive segment, hopeful about the company's role in autonomous driving. He explains, "As industry-wide innovation moves us closer towards autonomous driving, we fully expect NVDA to play a crucial role in its development and ultimate implementation."

The analyst reiterated his Neutral rating on the stock and $30 price target. He states, "With the FY:18 expiration of the Intel license agreement limiting growth in FY:18, we continue to rate NVDA Neutral and we maintain our $30 price target." Brian Alger has a 36% success rate recommending stocks with an average loss of (12.1%) per rating.

According to TipRanks statistics, out of the 10 analysts who have rated the company in the past 4 months, 4 gave a Buy rating, 1 gave a Sell rating, and 5 remain on the sidelines. The average 12-month price target for the stock is $33, marking a 9% upside from current levels.