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Evercore: Rumors Of Qualcomm Buying NXP Semiconductors Could Be 'Very Real'

Evercore: Rumors Of Qualcomm Buying NXP Semiconductors Could Be 'Very Real'

An Evercore analyst said speculation of chipmaker QUALCOMM, Inc. (NASDAQ: QCOM) agreeing to acquire NXP Semiconductors NV (NASDAQ: NXPI) could be "very real."

"[D]eal could be largely done with cash and double-digit accretion for QCOM," the analyst said.

The comments came after Wall Street Journal reported Qualcomm is in talks to buyNXP in a deal that could be valued at more than $30 billion.

Related Link: Did Bernstein Call A Qualcomm-NXP Merger Thursday Morning?

The report said a deal could be struck in the next two to three months.

Meanwhile, the analyst expects the price at $116, which is 14-15x on $8 EPS.

Moreover, the analyst noted that Broadcom Ltd (NASDAQ: AVGO) may also steps in to bid as they have been talking a desire to do a big deal similar to Qualcomm.

The analyst believes the potential deal "would think relatively clean on antitrust, as they each list extensive competitors in the K's but not each other."

At time of writing, shares of NXP surged 15.93 percent to $95.34 after reaching a 52-week high of $98.09. Shares of Qualcomm also set a new 52-week high of $68.83 and were up 6.07 percent to $67.30.

In addition, Broadcom shares also gained 1.29 percent to $172.90.

Latest Ratings for AVGO

Apr 2020Charter EquityUpgradesMarket PerformMarket Outperform
Mar 2020KeyBancMaintainsOverweight
Mar 2020Morgan StanleyMaintainsOverweight

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