NXP Semiconductors (NXPI) PT Raised at Oppenheimer Ahead of Earnings and Potential M&A

October 25, 2016 9:24 AM EDT
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Price: $96.00 -1.84%

Rating Summary:
    19 Buy, 10 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Oppenheimer analyst Rick Schafer raised his price target on Outperform-rated NXP Semiconductors NV (NASDAQ: NXPI) to $110.00 (from $100.00) and previewed Q3 earnings. The analyst said near term shares will likely react more to M&A speculation than fundamentals.

Schafer commented, "NXPI reports 3Q results Wednesday ATC and hosts its conference call 8AM ET Thursday. We see results/outlook mostly in line with consensus 3Q/4Q sales/EPS of $2.47B/$1.60 and $$2.42B/$1.61. We expect NT fundamentals to take a back seat to mgmt commentary surrounding recent reports (beginning with TheStreet.com on 9/29) that QCOM is in talks to acquire NXPI for ~$110/share. We also see NXPI as an accretive use of QCOM's nearly $30B offshore cash horde that can allow the company to diversify away from handsets. NXPI represents a relatively inexpensive non-US asset (at ~13x CY17E). We think a QCOM/NXPI deal is more likely than not. Near term shares likely react more to M&A speculation than fundamentals. We are raising our PT from $100 to $110."

For an analyst ratings summary and ratings history on NXP Semiconductors NV click here. For more ratings news on NXP Semiconductors NV click here.

Shares of NXP Semiconductors NV closed at $101.84 yesterday.

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