NXP Semiconductors (NXPI) Should Be Owned Despite Tumultuous Macro Backdrop, Needham & Company Says

Needham & Company analyst Rajvindra Gill reiterated his Strong Buy rating and $140 price target on NXP Semiconductors NV (NASDAQ: NXPI) following Q2 results, saying despite the tumultuous macro backdrop you need to own the stock.

Gill commented, "In light of a tough macro, NXPI printed solid results, with highlights including: better expected GMs and lower OpEx. 3Q15 guidance was below consensus (as previewed), but continued OpEx controls are expected to offset the softer top-line. Overall, we were encouraged to see sequential revenue growth (3% Q/Q) while the majority of semis have guided for sales to be down mid-single digits Q/Q. Given the improving OpEx trend and decreased leverage, our EPS ests increase in FY15/FY16. We see significant earnings leverage in NXPI's model on a standalone basis that is amplified when the merger with FSL is completed in 4Q15. We continue to believe the company's could yield $9+ of EPS with further upside possible if revenue synergies are to develop. Maintain Strong Buy, $140PT."

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 $91.80 yesterday.

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