With NXP Semiconductors NV (NASDAQ:NXPI) preparing to release second-quarter earnings this evening, Oppenheimer analyst Rick Schafer weighed in with a few expectations. The analyst believes NXPI tracked to a roughly in-line quarter, as ongoing strength in Automotive and Secure ID is likely offset by well-understood industrial and RF-PA softness and iPh6-related seasonal declines in SCD.

Schafer stated, “We expect 2Q sales/EPS roughly in line with the Street’s $1.51B/$1.38 estimates as any strength in Auto and SID are offset by RF-PA weakness and Apple-related seasonal declines in SCD. More importantly, we see downside risk to consensus $1.6B (+6%) top-line estimate and are trimming estimates. Our estimate revisions reflect macro headwinds in China and Europe and associated industrial and wireless infrastructure softness.”

“We continue to expect significant synergies in the pending FSL merger and see material upside to our NXPI estimates once the deal closes, sometime in C4Q. Risk/reward appears favorable with shares trading just $5 above pre-deal price.”, the analyst added.

The analyst reiterated an Outperform rating on NXP Semiconductors stock with a price target of $115, which represents a potential upside of 26% from where the stock is currently trading.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Rick Schafer has a total average return of 22.2% and a 74.3% success rate. Schafer has a 16.3% average return when recommending NXPI, and is ranked #28 out of 3718 analysts.

Out of the 17 analysts polled by TipRanks, 15 rate NXPI a Buy, while 2 rate the stock a Hold. With a return potential of 20%, the stock’s consensus target price stands at $109.87.


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