NXPI
NXP Semiconductors N.V.
TMT
05/15/2015
Presented
| Date | 05/13/2015 |
| Price | $101.64 |
| Market Cap | N/A |
| Ent Value | $26.70B |
| P/E Ratio | 76.6x |
| Book Value | $1.95 |
| Div Yield | N/A |
| Shares O/S | 233.51M |
| Ave Daily Vol | 3,630,000 |
| Short Int | 3.39% |
Current
| Price | $232.85 |
| Market Cap | $59.31B |
| NXP Semiconductors N.V., a semiconductor company, provides high performance mixed signal and standard product solutions for radio frequency (RF), analog, power management, interface, security, and digital processing products worldwide. It provides in-vehicle networking, car passive keyless entry and immobilization, and car radio and audio amplifiers; car solid state lighting drivers; communication products that are related to assisted and autonomous driving; ICs for e-government, transportation, and access management; RF power amplifiers, small signal RF discretes, and RF ICs for mobile, consumer electronics, and cable television infrastructure; AC-DC power conversion ICs for notebook personal computers; low power audio ICs; and microcontrollers. The company also develops audio software solutions that enable mobile device manufacturers to produce hand held products. In addition, it provides standard semiconductor components, such as small signal discretes, power discretes, protection and signal conditioning devices, and standard logic devices. The company also offers discrete semiconductors. Its products are used in automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer, and computing applications. The company markets its products to various original equipment manufacturers, original design manufacturers, contract manufacturers, and distributors. The company was formerly known as KASLION Acquisition B.V and changed its name to NXP Semiconductors N.V. in May 2010. NXP Semiconductors N.V. was founded in 2006 and is headquartered in Eindhoven, the Netherlands. |
Publicly traded companies mentioned herein: Avago Technologies Limited (AVGO), Cypress Semiconductor Corporation (CY), Freescale Semiconductor Ltd (FSL), NXP Semiconductors NV (NXPI)
Highlights
The presenter is long shares of NXP Semiconductors (NXPI) and sees the potential for 33% upside by year’s end, 2015. Overall, the bull case is “reasonably well known” and the benefits of the announced deal with Freescale is “understood”; however, the upside potential is not reflected in the current stock price at all ($101). He quickly explained the math behind his $135 price target ($9.90 of 2017 EPS, 15x multiple, 10% discount rate), and then outlined his thesis as follows:
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