Freescale Deal Synergies Could Drive NXP Semiconductors (NXPI) as High as $195/Share, Mizuho Says

June 4, 2015 1:50 PM EDT
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Price: $153.81 -0.27%

Rating Summary:
    20 Buy, 12 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 4 | Down: 11 | New: 40
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Mizuho Securities analyst Vijay Rakesh provided a preliminary merger model for NXP Semiconductors' (NASDAQ: NXPI) pending takeover of Freescale Semi (NYSE: FSL), which would create the #1 automotive semiconductor supplier worldwide and driving over $10B/yr in revenues.

"We believe the deal will create value almost immediately as synergies within the first year are expected to be ~$200M with future years exceeding $500M - though we believe it could be conservative," Rakesh

The firm is not changing their Outperform rating and $140 price target on NXPI, but said given the potential for 2017E EPS at $11-$13 with more upside from synergies, a conservative 15x multiple could drive a stock price valuation in the range of $165-$195.

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 $108.23 yesterday.



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