UBS downgrades Nordic Semiconductor stock to Sell despite price target hike

Published 02/09/2025, 08:34
UBS downgrades Nordic Semiconductor stock to Sell despite price target hike

Investing.com - UBS downgraded Nordic Semiconductor ASA (OL:NOD) from Neutral to Sell on Tuesday, while paradoxically raising its price target to NOK121.00 from NOK115.00.

The downgrade comes despite Nordic Semiconductor’s strong year-to-date performance, with shares up 60% as the company emerges from a downcycle and positions itself for revenue growth exceeding 20% in 2025.

UBS believes the market is currently pricing in approximately 20% growth over the next three years, which aligns with both consensus estimates and company guidance, but sees downside risk specifically to 2026 performance.

The investment bank’s 2026 revenue estimates for Nordic Semiconductor sit approximately 6% below consensus, citing "fading cyclical and customer specific tailwinds, and continued challenging macro" conditions as key concerns.

The downgrade reflects UBS’s view of risks to Nordic Semiconductor’s 2026 performance combined with the stock’s current valuation level, which it considers too high despite raising its price target.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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