NXP Semiconductors (NASDAQ:NXPI) Price Target Upped to $70 by Drexel Hamilton

Technology Stocks News 19

In a research not issued on Wednesday, Drexel Hamilton increased their price target to $70 for NXP Semiconductors (NASDAQ:NXPI).

Highlights from the report include:

  • A broadening economic upturn providing global cyclical lift benefits well-situated NXP (NASDAQ:NXPI), especially in mobiles, autos, security and industrial
  • Customers entering the year with moderate inventories are now faced with establishing buffer stocks that will benefit orders and build backlog
  • Resulting stable component pricing necessarily combines with rising factory utilization to up always mix dependent gross margin
  • With high performance mixed signal chips steadily rising in revenue contribution relative to commoditized parts, so does NXP’s profit model
  • Further multiple expansion is possible as cyclical visibility continues to broaden for an industry seeing upside demand in the face of tight supply
  • Reconstituted chip-producing enterprises such as NXP (NASDAQ:NXPI) could further enhance their relative profile through judicious consolidating measures
  • Such prospective rationalizing moves mooted at CES early this year are being buttressed by steadily improved cash flow and balance sheet

About NXP

NXP Semiconductors NV is a semiconductor company providing high performance mixed signal and standard product solutions. Its solutions are used for automotive, identification, wireless infrastructure, lighting, consumer and computing applications.

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