) to buy from hold.
Analyst Quinn Bolton says the graphic chip maker's valuation is near historic lows. He says Nvidia will completely refresh its product line-up by yearend, beginning with a mainstream NV43 part on Wednesday. Bolton believes an aggressive pricing environment is likely to prove temporary. He notes the GeForce 6 family of products carries significantly better gross margin than the GeForce FX family.
Bolton notes the company announced a $300-million stock buyback. He set a $15 target, raised hte 23 cents fiscal 2005 (Jan.) earnings per share estimate to 25 cents, and upped the 30 cents fiscal 2006 estimate to 45 cents. Bolton says a strong buy rating would require greater visibility into an earnings recovery.