Morgan Stanley has revised its price target for NXP Semiconductors (NXPI, Financial) from $257 to $229, while maintaining an Overweight rating on the stock. This adjustment comes as the market for analog components enters its seventh month of an upcycle, yet shows only modest signs of recovery. The current cycle has seen just a 2-point improvement, a significant drop compared to the average 13-point increase seen in past cycles.
According to a survey conducted with distributors, the outlook for the quarter ending in June remains cautious. Expectations for quarter-over-quarter growth are predicted to stay flat when compared to the March quarter. Many respondents anticipate the results for the June-end quarter to be either aligned with or lagging behind typical seasonal performance.
Despite this subdued outlook, Morgan Stanley continues to express confidence in NXP Semiconductors' long-term potential, as reflected in their maintained Overweight rating, suggesting that the company is still a favorable investment relative to its peers.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 27 analysts, the average target price for NXP Semiconductors NV (NXPI, Financial) is $241.07 with a high estimate of $301.12 and a low estimate of $170.00. The average target implies an upside of 41.19% from the current price of $170.74. More detailed estimate data can be found on the NXP Semiconductors NV (NXPI) Forecast page.
Based on the consensus recommendation from 31 brokerage firms, NXP Semiconductors NV's (NXPI, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for NXP Semiconductors NV (NXPI, Financial) in one year is $204.08, suggesting a upside of 19.53% from the current price of $170.74. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the NXP Semiconductors NV (NXPI) Summary page.
