Citi says recent data points from STMicroelectronics (STM) and Visteon (VC) suggest worsening fundamentals for semis sold into the auto end market. The firm expects more downside from the automotive end market for all analog companies, saying sales from the auto end market have only declined by roughly low-teens percent from its peak, well below the 30%-40% decline in the industrial end market. Citi reiterates a Sell rating on NXP Semiconductors (NXPI), noting 55% of the company’s sales are exposed to the auto end market. Within the analog names, the firm favors Analog Devices (ADI) and Microchip (MCHP) as it sees more upside to earnings.
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