Citi analyst Christopher Danely upgraded the rating on NXP Semiconductors (NXPI – Research Report) to a Buy today, setting a price target of $290.00.
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Christopher Danely has given his Buy rating due to a combination of factors signaling an imminent recovery in the analog market. Notably, commentary from industry leaders like ADI highlights an expected resurgence in the Industrial sector, which should help offset ongoing challenges in the Automotive segment. As a result, Danely anticipates a positive shift in NXP’s performance.
Moreover, with consensus estimates having declined by about 30% recently, much of the potential downside seems already factored into NXP’s current valuation. This sets the stage for an upward revision in estimates, potentially driving a broad-based expansion of multiples. Consequently, Danely has raised the price target for NXPI from $210 to $290, reflecting this optimistic outlook and expected 30-40% multiple expansion.
In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $255.00 price target.