Goldman Boosts Price Target on NXP Semiconductors

    Things could be looking up for NXP Semiconductors (NXPI)  .   Just weeks after NXP's planned merger with Qualcomm (QCOM)  was scuttled, Goldman Sachs analysts reinstituted coverage of the recently beleaguered stock, issuing a price target of $106 for NXP, which closed just below $96 on Thursday.   The stock has traded as low as $90 in the past two months after reaching a peak of $125.93 in February in advance of Qualcomm's long-anticipated $44 billion merger with the company.   Hedge fund managers heavily invested in the stock soured on NXP after Qualcomm scuttled the deal when Chinese regulators did not approve the merger as expected, executives said in a July 25 earnings call.   Monaco-based Tyrus Capital held more than $500 million in shares of NXP, according to an SEC 13F filing in June 2018. Elliott Management, which had estimated NPX's value last year at $135 a share, trimmed its holdings in NXP from 7.1% to 5.5% this summer, according to FactSet.   "Continued uncertainty overhanging such a large acquisition introduces heightened risk," Steve Mollenkopf, chief executive officer of Qualcomm said about the scuttled merger in the July 25 call. "We weighed that risk against the likelihood of a change in the current geopolitical environment, which we didn't believe was a high probability outcome in the near future."   Shares of NXP moved slightly downward in Thursday trading to close at $95.68.   ActionAlertsPLUS.com research analyst Zev Fima said the recent pullback in NXP's price could leave the stock undervalued. The company is a leader in producing microchips for automobiles, Fima said, adding that nothing has fundamentally changed except the merger being called off.   Fima said the stock has rebounded twice from a low of around $90 since May. That shows that shares could return to significantly higher levels.   "There is a bad taste in people's mouths from people who expected Qualcomm to pay $127.50 for the stock," Fima said. "NXP (still) has a lot of tech in cars and other businesses to be excited about."
Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.