NXPI

NXP Semiconductors N.V.

TMT


Presented:04/17/2019
Price:$101.17
Cap:$33.25B
Current Price:$232.85
Cap:$59.31B

Presented

Date04/17/2019
Price$101.17
Market Cap$33.25B
Ent Value$26.36B
P/E Ratio14.63x
Book Value$35.88
Div Yield0.99%
Shares O/S328.70M
Ave Daily Vol3,655,356
Short IntN/A

Current

Price$232.85
Market Cap$59.31B
NXP Semiconductors NV is a holding company, which engages in the provision of semiconductor solutions. It focuses on high performance mixed signal (HMPS), which delivers high performance mixed signal solutions to its customers to satisfy their system and sub-systems needs across the application areas such as automotive, identification, mobile, consumer, computing, wireless infrastructure, lighting and industrial, and software solutions for mobile phones. The company was founded on August 2, 2006 and is headquartered in Eindhovezn, the Netherlands.

Publicly traded companies mentioned herein: Analog Devices Inc (ADI), NXP Semiconductors NV (NXPI), QUALCOMM Inc (QCOM), Texas Instruments Inc (TXN)

Highlights

The presenter is long shares of NXP Semiconductors (NXPI), the analog semiconductors company. QCOM spent nearly two years attempting to acquire NXPI, but the deal broke down in July 2018, creating a “massive” technical overhang. Combined with a semis down cycle, China autos imploding, and macro concerns, this led to technical dislocation at the end of 2018 that saw share prices dip to ~$70. It, along with the rest of the market, has recovered slightly since then, but the presenter still views the current ~$100 share price as undervalued. In a “reasonably fine case,” he expects the stock price to reach $140 – $154 on the back of improvements in the Chinese auto market, strong end market exposure, and earnings growth.

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Idea Discussion

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