Morgan Stanley Downgrades NXP Semiconductor to Equal-weight However Raises Goal Value to $213


“We stay constructive on NXP’s progress drivers and improved execution, though this now seems extra appropriately mirrored within the inventory. This name may very well be early, contemplating the power within the semi cycle and the corporate’s lean stock within the distribution channel that ought to function a tailwind to progress, albeit these dynamics appear widely known at this level. Current work from our fairness technique group factors to a number of compression in 2021, putting a better burden on estimate revisions from right here. Thus far, after vital upside to the corporate’s Q1 outlook offered in early February (income guided 10% above the Road and EPS 23% larger, or ~2x that of friends), significant EPS revisions are doubtless tougher to return by close to time period.”

NXP is ready to report its first-quarter earnings in late April. In keeping with ZACKS Analysis, the corporate is predicted to report earnings of $2.21 per share, which represents year-over-year progress of over 8% from $2.04 per share seen in the identical quarter a 12 months in the past.

ZACKS Analysis forecasts web gross sales of $2.55 billion, up 26.4% from the year-ago interval. For the complete 12 months, Zacks expects earnings of $9.37 per share and income of $10.46 billion.

NXP Semiconductor’s shares, which rose about 25% in 2020, surged over 33% to this point this 12 months.

Nineteen analysts who provided inventory scores for NXP within the final three months forecast the common worth in 12 months at $206.63 with a excessive forecast of $250.00 and a low forecast of $168.00.

The typical worth goal represents a -2.60% lower from the final worth of $212.14. Of these 19 fairness analysts, 15 rated “Purchase”, 4 rated “Maintain” whereas none rated “Promote”, in accordance with Tipranks.

Different fairness analysts additionally not too long ago up to date their inventory outlook. Keybanc raised the goal worth to $225 from $210. NXP Semiconductors had its goal worth elevated to $250 from $215. The brokerage presently has an “outperform” score on the semiconductor supplier’s inventory. Barclays boosted their worth goal to $200 from $150 and gave the corporate an “chubby” score.

Furthermore, Cowen upped their worth goal to $225 from $220 and gave the inventory an “outperform” score. Raymond James upped their worth goal to $220 from $210 and gave the inventory an “outperform” score.

NXP Semiconductor (NXP) has enticing publicity to secular progress themes like EVs, rising penetration of ADAS, connectivity, and cell funds. Moreover, the corporate has executed effectively this cycle and specifically, its lean channel stock positions them effectively for a snapback as demand improves,” Morgan Stanley’s Hettenbach added.

“Nevertheless, we transfer to the sidelines after a interval of robust outperformance within the inventory. NXPI’s a number of relative to friends has moved from a cloth low cost to barely above the place it sometimes trades. Moreover, we expect significant EPS revisions are going to be tougher to return by close to time period.”

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