Needham Keeps a Buy Rating on NXP Semiconductors (NXPI)


In a report released today, Rajvindra Gill from Needham maintained a Buy rating on NXP Semiconductors (NXPI), with a price target of $105. The company’s shares closed yesterday at $90.73.

Gill observed:

“NXP posted solid 4Q18 results but lowered revenue guidance for 1Q19. The new 1Q19 guidance, which is lower than our below-consensus estimate, calls for a 13% Q/Q revenue decline. Revenue was affected by softness in China auto and industrial, WLTP delays, and weak smartphone sales. However, similar to other broad-based MCU/analog suppliers (MCHP , ON), NXP has seen an uptick in order rates in the past few weeks and expects a rebound in 2Q. Second half ramp remains the key question for NXPI, in fact across our universe, largely contingent on a resolution of trade issues with China.”

According to TipRanks.com, Gill is a 5-star analyst with an average return of 11.5% and a 55.6% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Everspin Technologies Inc, Smart Global Holdings Inc, and Adesto Technologies Corp.

Currently, the analyst consensus on NXP Semiconductors is a Moderate Buy with an average price target of $97.88, implying a 7.9% upside from current levels. In a report issued on February 6, Credit Suisse also maintained a Buy rating on the stock with a $125 price target.

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NXP Semiconductors’ market cap is currently $26.81B and has a P/E ratio of 11.10. The company has a Price to Book ratio of 2.52.

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NXP Semiconductors NV is a holding company, which engages in the development, manufacture, and provision of mixed-signal semiconductor solutions. It operates through the following segments: High Performance Mixed Signal, Standard Products, and Corporate and Other.