Needham & Company analyst Rajvindra Gill reiterated a Strong Buy rating and raised his price target on NXP Semiconductors NV (NASDAQ: NXPI) to $120.00 (from $100.00) following strong results/outlook.

Gill commented, "We are increasing our price target to $120 (37% upside) on a strong qrt/guide. The merger with Freescale is going smoothly and we continue to forecast proforma earnings power of $7 to $8. With the new LT- financial targets of $11B of revenue, >30% OM, we could see upside to our PT as we progress throughout the year. Some of the headwinds NXPI faced in the 2H15 owing to the broader industry inventory correction is largely over. We recommend investors stay with big consolidators with earnings accretion in a subdued demand environment. Moreover, NXPI is aligned to the key secular growth drivers in the semiconductor industry: automotive, IoT and mobile payments. NXPI fits in this mold and we maintain Strong Buy."

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Shares of NXP Semiconductors NV closed at $83.34 yesterday.