NXPI

NXP Semiconductors N.V.

TMT


Presented:06/02/2016
Price:$93.50
Cap:$31.96B
Current Price:$232.85
Cap:$59.31B

Presented

Date06/02/2016
Price$93.50
Market Cap$31.96B
Ent Value$35.99B
P/E Ratio17.35x
Book Value$32.67
Div Yield0%
Shares O/S341.83M
Ave Daily Vol3,976,997
Short Int4.47%

Current

Price$232.85
Market Cap$59.31B
NXP Semiconductors NV engages in the provision of secure connectivity solutions for embedded applications. It operates through the High Performance Mixed Signal and Standard Products segments. The High Performance Mixed Signal segment delivers high performance mixed signal solutions to customers to satisfy their system and sub-system needs across eight application areas: automotive, identification, mobile, consumer, computing, wireless infrastructure, lighting, and industrial. The Standard Products segment supplies a broad range of standard semiconductor components, such as small signal discretes, power discretes, protection and signal conditioning devices and standard logic devices, which largely produce in dedicated in-house high-volume manufacturing operations. The company was founded on August 2, 2006 and is headquartered in Eindhovezn, Netherlands.

Publicly traded companies mentioned herein: Broadcom (AVGO), Infineon Technologies AG (IFX GR), NXP Semiconductors NV (NXPI), QUALCOMM Inc (QCOM), Texas Instruments Inc (TXN)

Highlights

The presenter is long shares of NXP Semiconductors (NXPI) at $94 and sees two ways for investors to win. First, NXPI closed the Freescale acquisition in December 2015 and is the top automotive electronics/ chips maker. It can simply execute on its business model, beat on synergies, sell the Standard Products business, and become “more like Texas Instruments”. In this scenario, NXPI should be awarded a better multiple by the market. If management can produce in line or slightly better than expected results in coming quarters, there is a high probability the share price responds favorably. The second way to win would be M&A, and the presenter sees a 25% chance that Avago or Qualcomm could be interested in acquiring NXPI.

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