TD Cowen analyst Joshua Buchalter maintained a Buy rating on NXP Semiconductors (NXPI – Research Report) yesterday and set a price target of $210.00.
Joshua Buchalter has given his Buy rating due to a combination of factors that highlight NXP Semiconductors’ potential despite recent challenges. The company is seen as maintaining a resilient business model with strong capital returns, which are currently available at a discount valuation. Although recent results and guidance were somewhat underwhelming, with limited upside and an uncertain demand backdrop for the second half of 2025, the long-term prospects remain promising.
Despite the unexpected announcement of CEO Kurt Sievers’ retirement, which may have impacted investor sentiment, NXP’s focus on improving cyclical trends and its strategic position in the automotive and industrial sectors offer significant growth opportunities. The company is expected to benefit from several untapped levers, such as improved utilization and cost benefits from wafer production, which could enhance gross margins. Overall, the combination of these factors supports a positive outlook for NXP’s stock, justifying the Buy rating.
In another report released yesterday, Truist Financial also reiterated a Buy rating on the stock with a $230.00 price target.