NXP Semiconductors (NXPI) Guides 4Q Down vs. Flat Consensus; Mizuho Securities Reiterates Buy
Mizuho Securities reiterated a Buy rating and $120.00 price target on NXP Semiconductors NV (NASDAQ: NXPI) following the company's 3Q15 earnings results. NXPI reported SepQ earnings that were inline with consensus, but guided DecQ down 15% q/q versus a flat consensus. The down 15% 4Q15 guide is to correct some of the distributor inventories that built up and, ex-inventory alignment, NXPI's guide would have been down only low- to mid-single digits.
Analyst Vijay Rakesh commented, "NXPI reported SepQ earnings that were inline with consensus, but guided DecQ down 15% q/q versus a flat consensus. While there are some concerns on a stuffed channel or share loss, we believe NXPI "took its eyes off the ball" with the pending FSL merger. The Automotive segment has 4-5 year design cycles and we do not see any share loss, but NXPI could be "kitchen sinking" ahead of the FSL merger. With a lot of inventory adjustment coming in the DecQ, we are buyers here. Lowering our estimates and our PT goes to $120."
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Shares of NXP Semiconductors NV closed at $90.92 yesterday.