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Investing.com - Truist Securities raised its price target on NXP Semiconductors NV (NASDAQ:NXPI), a $56.8 billion semiconductor company with a 56.2% gross margin, to $252.00 from $230.00 on Wednesday, while maintaining a Buy rating on the stock. According to InvestingPro analysis, the company’s current Fair Value suggests slight undervaluation.
The firm cited NXP’s modest second-quarter earnings beat and third-quarter guidance raise, noting that year-over-year growth remains negative but is progressively improving. Truist expects growth to turn positive in the fourth quarter based on management commentary about normal seasonality and positive internal metrics. The company has maintained profitability over the last twelve months, with trailing revenue of $12.32 billion.
Truist characterized the semiconductor company’s performance as a recovery that "feels more like the end of an inventory burn than a big ramp in end demand." The firm highlighted that NXP has managed cyclical dynamics better than its peers yet trades at a discount, currently at 26.5x earnings. InvestingPro subscribers can access detailed valuation metrics and 5+ additional exclusive insights about NXPI’s financial health and growth prospects.
The analyst adjusted the earnings model to reflect a slightly more muted recovery, with calendar year 2026 earnings per share now projected at $13.99, down from the previous estimate of $14.81.
The new $252 price target is based on a multiple of 18 times earnings, which represents a four times discount to recently inflated peer valuations.
In other recent news, NXP Semiconductors has reported a strong earnings performance, which has led to several analyst firms adjusting their price targets for the company. Bernstein raised its price target to $220, citing a positive earnings report and growing confidence in cyclical industry trends. Cantor Fitzgerald increased its target to $280, highlighting NXP’s solid performance and potential upside in the upcoming quarter. Needham also raised its price target to $250, following better-than-expected quarterly results and an upward revision in company guidance. UBS reiterated a Buy rating with a $276 price target, maintaining a positive outlook despite initial expectations for stronger guidance. Raymond (NSE:RYMD) James reaffirmed an Outperform rating with a $250 price target, emphasizing NXP’s geographic diversity as a key strength. These developments reflect NXP’s strong positioning and performance in the semiconductor industry.
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