Jefferies Tweaks Estimates on NXP Semiconductors NV (NXPI), Remains Bullish with $21 Price Target

Jefferies is reaffirming its Buy rating and $21 price target on shares of NXP Semiconductors NV (NASDAQ: NXPI), but is updating its estimates.

For the first quarter of fiscal 2012, the firm is now forecasting gross margin will fall 1.3 percent quarter over quarter to 43.5 percent due to lower factory utilization. Jefferies also predicts utilization will decline by 10 percent over the fourth quarter and estimates it will impact the company's first quarter gross margin by roughly $25 million.

Looking ahead Jefferies anticipates NXPI's net debt will shrink to $1,970 million by the end of 2012 and to $753 million by the end of 2013. Through 2012, the firm forecasts gross margin will increase by about 520 basis points.

An analyst at Jefferies also pointed out that NXPI will benefit from an inventory restock in the first half of 2012 and that the company's HPMS revenue growth has outperformed other analog companies since the first quarter of 2009.

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 $15.14 yesterday.

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