CLSA Takes Very Mixed View on Top Chip Stocks: Intel, Qualcomm, Broadcom, NXP, TI and More

May 17, 2016 by Jon C. Ogg

Semiconductor stocks have had a wild ride in 2016. While the group is down only marginally so far in 2016, this group has risen by more than 15% from the inflection point selling climax in February. Now comes a new research call from the firm CLSA with a very mixed rating spectrum in the semiconductor space.

Some of the issues revolve around Apple, and some revolve around individual companies. 24/7 Wall St. has added historical trading data and color on each of these stock chip calls from CLSA.

The first issue should be viewed around Dow component Intel Corp. (NASDAQ: INTC). It was initiated with an Underperform rating, Wall Street analyst code for “sell.” The price target looks more like a “Hold” or “Neutral rating though, as the price target of $30 was versus a prior closing price of $30.39. Shares of Intel were last trading lower at $30.18, with a consensus analyst price target of $35.35 and a 52-week trading range of $24.87 to $35.59. Intel is viewed as an Apple laggard and as a company that needs to take a different approach and have a better focus on individual companies ahead.

CLSA assigned a new Buy rating to Qualcomm Inc. (NASDAQ: QCOM), and the firm’s $65 price target compares to a closing price of $51.91. Qualcomm shares were recently trading up 19 cents at $52.10, bucking the trend of lower semiconductor stocks so far on Tuesday. The consensus price target is $56.69, and the 52-week trading range is $42.24 to $71.32.

Broadcom Ltd. (NASDAQ: AVGO), which is now the amalgamated Avago from overseas, which acquired U.S.-based Broadcom, was started with a Buy rating and was assigned a $165 price target. Its prior closing price was $142.65, and it was last seen down 70 cents at $141.95. Broadcom has a consensus price target of $178.52 and a 52-week range of $100.00 to $159.65. This Apple supplier is expected to get a boost in orders ahead.


Also assigned a Buy rating at CLSA was NXP Semiconductors N.V. (NASDAQ: NXPI), and the $105 price target compares to a $84.97 close. Shares were last trading at $85.37, with a consensus price target of $109.13 and a 52-week range of $61.61 to $114.00. CLSA sees the company beating earnings and feels the estimates after the Freescale merger are too low. Also, it is believed to be an Apple winner ahead.

CLSA started Texas Instruments Inc. (NASDAQ: TXN) with an Underperform rating. This came with a $60 price target, versus a prior $58.02 closing price. The shares were last seen trading at $57.73, within a 52-week range of $43.49 to $60.60. The consensus price target is $62.52.

Other key semiconductor calls at CLSA were shown as follows:

  • Intersil Corp. (NASDAQ: ISIL) was started with a Underperform rating at CLSA, and the $12 price target was right in line with the prior $12.01 closing price.
  • Linear Technology Corp. (NASDAQ: LLTC) was started as Underperform and assigned a $45 price target. The prior close was $44.80.
  • Maxim Integrated Products Inc. (NASDAQ: MXIM) was started with an Underperform rating and assigned a target price of $38, versus a $36.36 prior close.
  • Microchip Technology Inc. (NASDAQ: MCHP) was started as Buy and was assigned a $58 price target (versus a $47.95 close).

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