Morgan Stanley raises its price target on NXP Semiconductors (NASDAQ:NXPI) from $110 to $117.50 while maintaining an Equal Weight rating.
Analyst Craig Hettenbach cites the “win/win” scenario of Qualcomm (NASDAQ:QCOM) offering a higher bid for NXP.
Hettenbach says “a higher bid would be inconsequential to Qualcomm’s balance sheet and deal accretion math” and that an offer of $120 a share would only reduce EPS by 2% to 3%.
On Friday, Elliott Management disclosed a 6% stake in NXP, which makes the activist investor firm the largest shareholder and puts more weight behind its desire for a higher price.
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