MicroVision MOVIA lidar gains support on NVIDIA DRIVE AGX platform
Jefferies downgraded Nordic Semiconductor ASA (OL:NOD:NO) from Buy to Underperform on Wednesday, slashing its price target to NOK102.00 from NOK164.00 amid concerns about future growth expectations.
The research firm cited normalized inventory levels across Nordic’s end markets, shifting investor focus to 2026 growth prospects that Jefferies believes are overestimated by current sell-side analysts.
Jefferies based its downgrade on a reverse sum-of-the-parts customer growth analysis and historical Internet of Things (IoT) market examination, concluding that current estimates reflect an unrealistic extrapolation of "super-normal growth rates experienced during COVID into the medium term."
The firm highlighted that Nordic’s EBITDA margins lag behind analog peers, with revenue growth representing the most significant factor affecting the company’s profitability and essential for maintaining its premium IoT multiple valuation.
Jefferies predicted that if its thesis proves correct and 2026 growth expectations face downward revisions, Nordic Semiconductor shares would likely underperform over the next 12 months.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.