Mizuho Downgrades NXP Semiconductors NV (NXPI) to Underperform

Mizuho analyst Vijay Rakesh downgraded NXP Semiconductors NV (NASDAQ: NXPI) from Outperform to Underperform with a price target of $188.00 (from $255.00).

The analyst commented, "With NXPI Auto exposure at ~55-60% the highest among peers and handset/RF ~10% of revs both combined ~60-70% of revs challenged, we see headwinds to top line growth limited by Global LVP underperformance (Ex-15), while peers TXN/STM seeing AI DC revenue growing 70%-100% y/y. While NXPI has a long-term strategy to move to foundry with VSMC, we believe foundry transitions and analog re-qualification and ramps take time. We are adjusting our estimates to BELOW consensus with:

No change to our MarQ rev/EPS estimates of $3.15B/$2.97 (cons. $3.15B/$2.98)
Lowering F26E from $13.4B/$13.73 to $13.1B/$13.37 (cons. $13.5B/$13.96)
Lowering F27E from $14.7B/$16.46 to $14.2B/$15.61 (cons. $14.9B/$16.74)"

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 $209.39 yesterday.

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