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This semiconductor stock could have more room to run after a strong first half, says UBS

This semiconductor stock could have more room to run after a strong first half, says UBS

CNBC10 hours ago
Rosy second-quarter earnings could give NXP Semiconductors more room to rally, according to UBS. The firm stood by its previous buy rating on the Dutch chip designer and manufacturer in a Wednesday note, but raised its price target to $276 per share from $250. UBS' forecast calls for about 19% upside from Thursday's $232.10 close. Analyst Francois-Xavier Bouvignies said that he expects NXP to report solid second-quarter results and issue an upbeat third-quarter forecast, which will result in consensus earnings estimates rising by 5% to 10% for the full year. "We expect this to be largely driven by the cyclical turn in the auto and industrial end-markets, which we both expect to by up 5% y-o-y," Bouvignies said. "This is consistent with feedback that we have heard through Q1 results and during May conferences." NXPI YTD mountain NXP Semiconductor stock in 2025. And even as shares have outperformed the broader market over the past month, the analyst said that NXP's rally looks to have more life left, Bouvignies said. Shares have gained nearly 17% over the past month as of Thursday, compared with a climb of 5.2% for the S & P 500. Bouvignies admits the stock's run means some of the company's potential is priced into its valuation. However, he said, "other analog peers have rallied up to 20% on similar hopes of a cyclical bounce. As the cycle turns we also believe the duration of the rally is likely to continue."
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