UBS reiterates Buy rating on NXP Semiconductors stock with $276 price target

Investing.com - UBS has reiterated its Buy rating on NXP Semiconductors NV (NASDAQ:NXPI), a prominent player in the semiconductor industry with a market capitalization of $56.4 billion, setting a price target of $276.00, according to a research note released Tuesday. According to InvestingPro data, the stock currently trades at $223.24, with analysts’ targets ranging from $185 to $289.

UBS analyst Francois-Xavier Bouvignies maintained the positive outlook on the semiconductor company despite acknowledging that the firm had expected a potentially stronger guidance driven by more pull-ins.

The UBS note described NXP’s results as "solid" with guidance above seasonal levels and inventory days decreasing, alongside what was characterized as a "resilient gross margin."

UBS indicated that the company’s earnings call would be significant, particularly regarding management’s commentary about the fourth quarter, which could demonstrate conservatism in their approach.

The research firm suggested this conservative stance might create opportunities for "more upgrades at a later stage," implying potential for future positive revisions to the company’s outlook.

In other recent news, NXP Semiconductors reported second-quarter revenue of $2.93 billion, marking a 3.2% sequential increase and slightly surpassing Stifel’s estimate by 0.9%. The company’s non-GAAP earnings per share were $2.72, exceeding both Stifel’s and Street estimates by $0.06 and $0.04 respectively. Stifel has maintained a Hold rating with a $210 price target, while Cantor Fitzgerald reiterated its Overweight rating with a $250 price target. Goldman Sachs has initiated coverage on NXP Semiconductors with a Buy rating and a price target of $276, highlighting the company’s significant revenue from the automotive sector. UBS also raised its price target to $276 from $250, maintaining a Buy rating due to a strong outlook. Despite potential challenges in the automotive sector, analysts remain optimistic about NXP’s performance. Cantor Fitzgerald noted that NXP’s gross margins have compressed less than the industry average, indicating robust financial health. These developments reflect a positive sentiment among analysts regarding NXP Semiconductors’ future prospects.

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