UPDATE: Drexel Hamilton Initiates Coverage on NXP Semiconductors NV with Buy Rating, $50 PT on Broadly Diversified World Electronics Proxy

In a report published Thursday, Drexel Hamilton analyst Richard Whittington initiated coverage on NXP Semiconductors NV NXPI with a Buy rating and $50.00 price target. In the report, Drexel Hamilton noted, “We initiate globally diversified, heavily restructured NXP, formerly Philips Semiconductor aka Signetics , with a Buy rating and $50 price target at 20x our $2.50 2014 GAAP EPS estimate, just over 12 times our $4.05 non-GAAP estimate. Focused primarily on analog, mixed signal semiconductors and embedded logic with a focus on mobile wireless and security, NXP also targets autos, identification, industrial, lighting, consumer, medical, and wireless infrastructure. Beyond the rationalization of a diverse product, the overall cost and debt structure of NXP is the incorporation of seasoned, long track record senior Silicon Valley management. We believe that structure allows the company to be better positioned to exploit upon the broad NXP technical capabilities. While R&D focus is now heavily analog, the combination of mixed signal, new generation, and legacy standard products should complement a marketing thrust at high volume runners, where security and customer ID are lever factors.” NXP Semiconductors NV closed on Wednesday at $41.68.