Buy NXP Semiconductors (NXPI) At These Levels - Needham & Company

Needham & Company analyst Rajvindra Gill reiterated a Strong Buy rating and $120 price target on NXP Semiconductors NV (NASDAQ: NXPI) saying they would be buyers as these levels following NXPI's first Analyst Day in over 2.5 years.

"Seventy percent of sales is derived from automotive (49%) and industrial & IoT (21%), each growing at 3-yr LT CAGR of 7-10% & 8-11% respectively," Gill commented. "Gross margin is expected to be 53 - 57%, operating margin is expected to be 31 – 34%, and FCF of $7-$8B from 2019-2021. Moreover, as of the close of the market 9/10/18, NXPI has repurchased 39.9MM shares, for a total $3.8BN. We expect that the $5BN buyback will be complete before the end of 2018. Stock now trades at ~20% discount to its peers on CY19 P/E."

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 $88.80 yesterday.

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