NXP Semiconductors (NXPI) Guides 4Q Down vs. Flat Consensus; Mizuho Securities Reiterates Buy

Mizuho Securities reiterated a Buy rating and $120.00 price target on NXP Semiconductors NV (NASDAQ: NXPI) following the company's 3Q15 earnings results. NXPI reported SepQ earnings that were inline with consensus, but guided DecQ down 15% q/q versus a flat consensus. The down 15% 4Q15 guide is to correct some of the distributor inventories that built up and, ex-inventory alignment, NXPI's guide would have been down only low- to mid-single digits.

Analyst Vijay Rakesh commented, "NXPI reported SepQ earnings that were inline with consensus, but guided DecQ down 15% q/q versus a flat consensus. While there are some concerns on a stuffed channel or share loss, we believe NXPI "took its eyes off the ball" with the pending FSL merger. The Automotive segment has 4-5 year design cycles and we do not see any share loss, but NXPI could be "kitchen sinking" ahead of the FSL merger. With a lot of inventory adjustment coming in the DecQ, we are buyers here. Lowering our estimates and our PT goes to $120."

For an analyst ratings summary and ratings history on NXP Semiconductors NV click here. For more ratings news on NXP Semiconductors NV click here.

Shares of NXP Semiconductors NV closed at $90.92 yesterday.

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