| 2016-10-03 09:21:13|
QCOM, NXPI 09:21 10/03 10/03/16
RBC says $120-130/share seems like high end of reasonable Qualcomm price for NXP
RBC analyst Amit Daryanani believes $120-$130 per share is likely the "upper end of the valuation framework" that Qualcomm (QCOM) would like to pay in any potential deal to acquire NXP Semiconductors (NXPI). While Qualcomm "can certainly elect to pay a larger premium" than that, doing so would likely come in the form of Qualcomm equity issuance, which would impede the accretion from the deal, Daryanani tells investors. The analyst keeps a Sector Perform rating on Qualcomm shares, but raised his price target on the stock to $70 from $59 citing the potential for diversification and higher cash flow generation that an NXP deal would provide.