Cantor Fitzgerald Reiterates Overweight Rating on NXP Semiconductors NV (NXPI)
Cantor Fitzgerald analyst Matthew Prisco reiterated an Overweight rating and $280.00 price target on NXP Semiconductors NV (NASDAQ: NXPI).
The analyst commented, "Amid Automotive fears, NXPI posted a modest topline beat/raise (as previewed), with mgmt. highlighting sequential growth across regions/end-markets and an outlook for continued sequential strength, driven by company-specific drivers and signs of cyclical recovery. From an end-market perspective, IIOT seemed to have tracked a touch worse-than-expected, offset by Mobile a touch better - but generally as expected. GMs came in as expected, Opex a touch higher in 4Q (assuming with Aviva/Kinara closures), and Interest/Other expense a touch higher (driving 3Q EPS to slightly miss consensus). Elsewhere, no change to channel inventory Q/Q and balance sheet days were up slightly in 3Q (potentially related to prebuilding for consolidation). Overall, this appears to be a solid report (with guidance better than many feared), with all eyes tomorrow focused around sustainability of the recovery (particularly amid the challenging Automotive headlines) and margin trajectory. We will update our model and thoughts tomorrow post-call (8am ET), but for now we reiterate our Overweight rating based on strong secular growth drivers and under-appreciated through-cycle resiliency, making NXPI one of the most undervalued names in Analog."
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Shares of NXP Semiconductors NV closed at $221.56 yesterday.