US Semiconductor Analyst Sees Analog Party Over, Cuts Estimates

• Citigroup analyst Christopher Danely maintained NXP Semiconductors N.V. (NASDAQ: NXPI) with a Neutral rating and reduced the price target from $190 to $150.

• Danely maintained Microchip Technology Inc (NASDAQ: MCHP) with a Neutral and slashed the price target from $72 to $62.

• His checks indicate the pushouts and cancellations that hit Analog Devices, Inc (NASDAQ: ADI) in July are impacting the rest of analog as lead times are declining.

• He believes weakening demand, especially in Europe, and high inventory is causing the downside.

• He expects NXP and Texas Instruments Inc (NASDAQ: TXN) will report weakness in bookings, and he reiterates his belief that this is just the beginning of the downturn and every company/every end market will feel it.

• He expects Microchip to feel it last, given it has the most extended lead times.

• Given its defensive nature, he continues to favor ADI as his top pick.

• Although SOX hit new lows last week, he expects it to hit new lows again as the downturn gains steam and estimates get cut.

• He still hopes for the three signs of a bottom in 1H23, most of the downside in estimates, capex cuts, and close-to-trough valuation on new numbers.

• Price Action: NXPI shares traded lower by 2.38% at $144 on the last check Tuesday.

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