Wall Street Races to NXP's Defense After Failed Qualcomm Deal
- Five analysts moved to buy recommendations after shares sank
- NXP had ‘deal fatigue’ and can now refocus, Deutsche Bank says
Photographer: Simon Dawson/Bloomberg
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A handful of NXP Semiconductors NV bulls have emerged since the company’s planned $44 billion takeover by Qualcomm Inc. fell apart Wednesday after failing to win Chinese regulatory approval.
At least five analysts have upgraded their recommendations on NXP to the equivalent of “buy” with many noting that an overhang on the stock was lifted when the nearly two-year saga with Qualcomm finally came to an end. A 12 percent decline in the shares over the prior three days also made for a more compelling risk-reward calculation, according to Sanford Bernstein & Co.