- Citi analyst Christopher Danely downgraded NXP Semiconductors NV (NASDAQ:NXPI) to Neutral from Buy with a price target of $190, down from $240 (6.8% upside), as his margin expansion thesis has played out.
- Danely derived his Buy thesis in February 2021 from the anticipation of superior margin/EPS upside and strength from the automotive end market. He expects auto strength to continue for a while.
- However, NXP’s margins were near the peak, and it would be difficult for the stock to outperform until a correction resets the bar.
- Danely lowered his target multiple and price target given narrow margin and EPS upside.
- Price Action: NXPI shares closed higher by 3.12% at $178.65 on Tuesday.
