Canaccord Genuity Remains Bullish on NXP Semiconductors (NXPI) as Shares Trade Down

Canaccord Genuity reiterated a Buy rating and $130.00 price target on NXP Semiconductors NV (NASDAQ: NXPI) as shares trade down to levels seen before Freescale merger was announced in March.

Analyst Matthew Ramsay commented, "Amidst the market turmoil the past several weeks, NXPI shares have traded back down to levels seen before the highly-accretive Freescale merger was announced in March. $9-10 in post-merger earnings power for 2017 are levels that have been heavily debated in our investor conversations over the last few months, and we still believe these are achievable when considering both cost and revenue synergy potential. However, pragmatically and conservatively discounting these numbers in attempt to factor in potentially slower global automotive growth and more modest GDP growth in China, we believe $8-9 in 2017 earnings power is very realistic and NXPI shares trade today at only 10x that range. Overall, we continue to believe NXP is fundamentally the best positioned mixed-signal semiconductor firm, regardless of market cap. Incorporating the effects of the pending Freescale merger, our thesis changes little. We believe the companies' product portfolios are complementary, particularly in automotive and IoT, and should allow for considerable cost synergies, pushing operating margin toward 30% once fully integrated with considerable pro forma free cash flow feeding a resumed buyback program mid-2016. Reiterate BUY, $130 PT."

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 $84.43 yesterday.

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