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.