10:30 AM EDT, 04/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target to $290 from $250 on a P/E of 18.5x our 2025 EPS view, above five-year historical forward average to reflect our view of bottoming fundamentals. We adjust our 2024 EPS view to $13.83 from $14.49 and keep 2025's at $15.72. NXPI posted Q1 EPS of $3.24 vs. $3.19, beating the $3.18 consensus. Sales fell 9% from Q4 (flat Y/ Y), hurt by declines across mobile (-14%), industrial (-13%), communications & other markets (-12%), and automotive (-5%). Although DIOs rose to 144 from 132 in Q4, channel inventory remains tight at 1.6 months, well below NXPI's long-term target of 2.5 months. We expect Tier-1 auto customers to continue digesting inventory in Q2, but we see industrials hitting a trough on improving demand in China. We think new product launches, modest channel refill, and content growth tied to ADAS/EVs will support an auto recovery in Q3/Q4 as industry conditions are likely to regain strength. Net debt stands at $6.9B (gross $10.2B), with net debt to EBITDA at a healthy 1.3x.