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Investing.com - UBS raised its price target on NXP Semiconductors NV (NASDAQ:NXPI) to $276.00 from $250.00 on Wednesday, while maintaining a Buy rating on the stock. According to InvestingPro data, this target aligns with the broader analyst consensus, as 12 analysts have recently revised their earnings estimates upward for the upcoming period.
The price target increase represents a 10.4% boost from UBS’s previous target of $250.00 for the semiconductor manufacturer.
UBS expects NXP to deliver strong second-quarter 2025 results along with robust third-quarter guidance, potentially leading to a 5-10% upgrade to consensus fiscal year 2025 earnings per share estimates.
The firm noted that while NXPI shares have risen 9% over the past month, suggesting some positive expectations are already reflected in the price, other analog semiconductor peers have rallied up to 20% on similar hopes of a cyclical recovery.
UBS believes the cyclical upturn in the semiconductor industry is likely to continue, supporting its decision to reiterate a Buy rating on NXP Semiconductors.
In other recent news, NXP Semiconductors has completed its acquisition of TTTech Auto, enhancing its capabilities in software-defined vehicles by integrating TTTech Auto’s MotionWise safety middleware with NXP’s CoreRide platform. This strategic move is part of NXP’s ongoing efforts to strengthen its presence in the automotive semiconductor market. The company also announced an interim dividend of $1.014 per share for the second quarter of 2025, citing strong capital structure and growth prospects as driving factors. Meanwhile, Cantor Fitzgerald has maintained an Overweight rating on NXP, projecting greater margin expansion for the company compared to its peers, Analog Devices (NASDAQ:ADI) and Texas Instruments (NASDAQ:TXN).
In contrast, Bernstein has lowered its price target for NXP from $225 to $200, maintaining a Market Perform rating due to concerns about the company’s heavy exposure to the automotive sector and potential tariff impacts. Truist Securities has also reduced its price target for NXP from $258 to $230, although it continues to recommend the stock as a Buy. This adjustment follows the unexpected retirement of CEO Kurt Sievers and current market challenges. Despite these concerns, Truist analysts have slightly increased their earnings per share estimate for 2026, reflecting a cautiously optimistic view on NXP’s long-term performance.
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