NXP Semiconductors (NXPI) Could Be on Radar of Some Big Buyers - Analyst

March 5, 2021 10:04 AM EST
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Broadcom (NASDAQ: AVGO) is once again set up as a big buyer, sixteen months clear of closing its nearly $11 billion purchase of Symantec's enterprise business, Gordon Haskett analyst Don Bilson notes.

While M&A got very little attention on last night's earnings call, "there is no hiding the fact that Hock Tan is looking around for his next purchase and he said as much last night," Bilson said.

As Broadcom continues its look, Bilson said he is keeping an eye on NXP Semiconductors (NASDAQ: NXPI), which has been mixed up with some Samsung takeover chatter, Bilson commented.

Yesterday, NXPI raised its quarterly dividend 50% to $0.5625 per share or $2.25 annualized. The board also approved a new $2 billion 2021 share repurchase program. Bilson said while NXPI expects to return more cash to shareholders in 2021, this is all moot if Samsung comes knocking.

In 2017, Qualcomm agreed to acquire NXP but the deal was nixed in 2018 amid China/U.S. tension. During that time, Broadcom unsuccessfully tried to buy Qualcomm.

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