NXP's Earnings: More Goals Than a Messi Season?

Another Assist From the Markets?

Hola everyone! Leo here. Heard some folks at UBS are saying NXP Semiconductors is about to score some serious goals. They're talking about a 'buy' rating and a boosted price target. Makes you wonder is this the market finally giving them the pass they need? You know like when Xavi used to find me in space – pure magic. Hopefully this isn't like that time I tried to build a computer... let's just say my coding skills are better suited for free kicks.

The Beautiful Earnings Game

Apparently these analysts are expecting NXP to deliver some beautiful second quarter results. And not just that they're predicting an upbeat forecast for the third quarter too. Sounds like they're about to bend it like Beckham but with chips not a football. If they get this right we might see earnings estimates rise by 5% to 10%. That's a bigger comeback than Barcelona after being down 4 0. Remember that PSG game? Incredible!

Autos and Industry: The Dynamic Duo

The secret sauce? The auto and industrial end markets. They're expected to be up 5% year over year. It's like when Suárez and Neymar linked up with me – unstoppable. These sectors are apparently making a cyclical turn which is music to investors' ears. I hope they don't fumble this opportunity. Nobody likes a missed penalty.

NXPI: Climbing the YTD Mountain

NXP's stock has been climbing faster than I can dribble past defenders. Up nearly 17% in the past month! That's a faster rise than my heart rate during a penalty shootout. Even though they've been outperforming the market these analysts think there's still room to run. Reminds me of when people said I was past my prime. Showed them didn't I?

Priced to Perfection?

Okay even the analysts admit that some of NXP's potential is already priced into the stock. But they're still optimistic pointing out that similar companies have rallied even more. It's like saying I'm good but Pelé was better... I'll just let that one slide. But if you believe this you have to believe in the magic of the pitch.

The Duration of the Rally: Messi's Endurance

These UBS guys seem to think that the rally has legs and is likely to continue. Just like my career... still going strong! They believe the cyclical turn will fuel a sustained period of growth. So keep your eyes on NXP. Maybe they'll be lifting trophies soon. And remember when in doubt just pass the ball to Messi… or invest in chips. Depends on your goals right?