Barclays upgrades NXP Semiconductors on rotation back into analog

Barclays analyst Tom O’Malley upgraded NXP Semiconductors to Overweight from Equal Weight with a price target of $260, up from $200. The analyst thinks there will be a rotation back into analog given the group’s underperformance versus the rest of semiconductors. The firm also sees further correction in auto but does not think it’s the over 20% seen in other end markets. When looking at the group, NXP is the most well positioned as it is the lowest off the prior peak and undergrew during the pandemic, the analyst tells investors in a research note. Using industry-advertised growth rates of above 10% shows NXP as the best relative versus Street estimates, contends Barclays.