Credit Suisse Reinstates NXP Semiconductors NV (NXPI) at Outperform

Earlier, Credit Suisse reinstated coverage on NXP Semiconductors NV (NASDAQ: NXPI) with a Outperform rating and $40 price target.

The firm said they see $0.75+ in potential EPS accretion over our $2.75 2012 EPS est, driven by B/S deleveraging (+$0.35-$0.45), further GM leverage (+$0.25-$0.35), and faster than expected rev growth ($0.20-$0.30).

"We believe revenue growth ests for NXP remain conservative with CS ests +4% y/y in 2012 and Street +5% y/y, baking in almost zero NFC ramp," analyst J. Pitzer stated. "We view a $200m incremental NFC contribution to 2012 as conservative (+$0.25 to EPS). While the NFC competitive environment is likely to heat up over the longer-term as NFC functionality (particularly the radio) is eventually integrated, we believe the secure element and software stack could continue to drive revs even in the handset market longer than we had originally anticipated (over time potentially being licensed)."

For more ratings news on NXP Semiconductors NV click here and for the rating history of NXP Semiconductors NV click here.

Shares of NXP Semiconductors NV closed at $32.62 yesterday.

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