On Nov 06, major Wall Street analysts update their ratings for $NXP Semiconductors (NXPI.US)$, with price targets ranging from $250 to $370.
J.P. Morgan analyst Harlan Sur maintains with a hold rating, and sets the target price at $260.
BofA Securities analyst Vivek Arya maintains with a buy rating, and adjusts the target price from $320 to $255.
Barclays analyst Thomas O'Malley maintains with a buy rating, and maintains the target price at $280.
Deutsche Bank analyst Ross Seymore maintains with a buy rating, and adjusts the target price from $255 to $285.
Jefferies analyst Blayne Curtis maintains with a buy rating, and adjusts the target price from $325 to $300.
Furthermore, according to the comprehensive report, the opinions of $NXP Semiconductors (NXPI.US)$'s main analysts recently are as follows:
NXP Semiconductors' forecast for the December quarter fell short of initial estimates, with expectations for the March-end quarter to decline by a seasonal high-single digit percentage. This is due to prevailing challenges across automotive, industrial, and IoT end markets. Despite these obstacles, the company continues to navigate through the auto industry's headwinds, leading to a revision of earlier projections subsequent to their recent quarterly financial disclosure.
Management has acknowledged China as the sole strong performer in the automotive sector, while noting a continuously sluggish industrial environment, and anticipates a weaker performance in the upcoming December and March quarters. The sustained softness in the industrial sector is suggested to be more favorable for NXP, given its comparatively minimal exposure among competitors. However, projections indicate that the automotive sector could see a mid-single-digit decline on a quarter-over-quarter basis for the next few quarters, leading to a significantly lower starting point for 2025 than initially anticipated.
NXP Semiconductors' Q3 results were consistent with expectations, but forecasts for Q4 and the early outlook for Q1 are on the weaker side, mirroring the trends observed across many auto/industrial peers outside of China. Despite the challenging economic environment, the company's projected sales growth for 2024 appears to be surpassing that of its competitors. Analysts suggest that the start of Q1 might represent the trough, and they anticipate that the inevitable rebound in auto production could spark a resurgence, particularly in a stock that is not overly saturated with AI speculation.
NXP Semiconductors fulfilled its projections, albeit forecasting a milder future for the second consecutive quarter. The current economic climate has led to cautious forecasts throughout the broad-based semiconductor sector this earnings season. There was an anticipation that NXP's previously cautious stance would offer more protection, which makes the fourth-quarter guidance and the implied first-quarter outlook less satisfactory. Nevertheless, it's believed that the company is addressing these challenges with appropriate and clear actions. The difficulties faced are considered to be systemic rather than specific to NXP, and it's expected that the company's financial results will improve as macro conditions do.
NXP Semiconductors' Q3 results aligned with expectations, yet the Q4 forecast for sales and EPS fell short of the Street consensus by 8% and 14%, respectively. With inventories nearing low points, there is anticipation for a significant recovery for NXP. The revised valuation accounts for a broader contraction in market multiples.
Here are the latest investment ratings and price targets for $NXP Semiconductors (NXPI.US)$ from 12 analysts:
Note:
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