Mizuho Securities analyst Vijay Rakesh has maintained their bullish stance on NXPI stock, giving a Buy rating yesterday.
Vijay Rakesh has given his Buy rating due to a combination of factors including NXP Semiconductors’ strategic positioning and potential for recovery in the latter half of 2025. Despite the weaker-than-expected guidance for the March quarter, with revenues predicted to decline by 9% quarter-over-quarter and gross margins also projected to decrease, Rakesh sees opportunities for improvement. The company’s strong presence in the automotive sector, which accounts for a significant portion of its revenue, is anticipated to benefit from a market recovery.
NXP’s inventory levels have been a point of concern, but the firm is targeting a “soft landing” with expectations of a rebound as manufacturing indicators begin to show signs of expansion. Additionally, the company’s efforts in stock buybacks highlight confidence in its future prospects. Although there are current headwinds, Rakesh believes in the potential upside of NXP’s strategic initiatives and market recovery, justifying the Buy rating.
In another report released yesterday, Oppenheimer also reiterated a Buy rating on the stock with a $300.00 price target.
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