Morgan Stanley analyst Craig Hettenbach said that he, and colleague James Faucette who covers Qualcomm (QCOM) at the firm, agree that closing their deal is the best path forward for both NXP Semiconductors (NXPI) and Qualcomm. However, given that the merger agreement expires in 9 days and U.S. China trade relations have taken an "uncertain turn," he thinks that the odds of NXP walking away and collecting a $2B break fee have increased if China does not approve the deal. Hettenbach sees 18% upside to the $127.50 takeout price and 14% downside to the $92 level of support he has previously identified in the event of a deal break and maintains an Equal Weight rating on NXP shares.

BofA raised the firm's price target on Texas Instruments (TXN) to $190 from $175 and keeps a Neutral rating on the shares. TI's small Q1 beat and inline but sequentially rising Q2 sales guidance, "while modest, potentially marks a recovery inflection in industrial chip demand," with positive read-across for U.S. peers such as Analog Devices (ADI), Microchip (MCHP), NXP Semiconductors (NXPI) and On Semiconductor (ON), the analyst tells investors. However, despite an expected recovery, TI's sustained high capex intensity could keep reported calendar year 2024-26 pro-forma EPS below $6 per share, the analyst added.

Check out this evening's top movers from around Wall Street, compiled by The Fly. HIGHER AFTER EARNINGSAudioEye (AEYE) up... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here