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03/31/15 04:21:13 PM
WORD ON THE STREET

NXP Semiconductors NV, Rockwell Collins Inc., Twitter, Inc.

NXP Semiconductors NV(NXPI) : In a report published Tuesday, Pacific Crest Securities analysts maintained an Outperform rating on NXP Semiconductors NV (NASDAQ: NXPI), with a price target of $135, saying that the company "stands to benefit" from the China bank card opportunity this year. Referring to talks with supply-chain partners, the analysts said that China's secured bank card shipments appear to be on track to record 30% to 40% growth in 2015. This translates to a jump from 500 million in 2014 to about 675 million this year. The growth would be driven by the "continued rollout from tier-2 banks," the analysts added. In the report Pacific Crest Securities noted, "NXP supplied almost 100% of the secured chips to the Chinese market in 2014, and we believe the company will likely secure over 90% market share this year, given its solid relationship with card vendors and strong technology leadership." The new PBOC 3.0 standard recommends the increased use of domestic chip suppliers for better security purposes. The analysts said that there could be limited traction given: "(1) the lack of government mandates, (2) the lack of competitive pricing due to low production yields, and (3) it is unable to support dual-encryption algorithm, which is necessary for international transactions." The supply-chain conversations suggest that NXP Semiconductors "remains competitively advantaged and capable of maintaining dominant market share through 2016." Citing NXP Semiconductors as one of their top picks, the analysts commented that the company is "strongly well positioned for both short- and long-term growth opportunities." Even when the China bank card opportunity tails off, following solid growth in 2015, NXP Semiconductors, now with the addition of FSL, seems "well positioned to capitalize on more sustainable growth opportunities in auto, industrial, and broad-based MCUs, offsetting concerns over Apple customer concentration and competitive share loss in payments," the report added. View More Analyst Ratings for NXPIView the Latest Analyst Ratings 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



Rockwell Collins Inc.(COL) : In a report published Tuesday, KeyBanc Capital Markets analysts maintained an Overweight rating on Rockwell Collins Inc (NYSE: COL), while raising the price target from $95 to $105. The annual MRO conference, scheduled for April, should "yield positive data" related to the aero aftermarket (AM), the analysts said. AM trends should gain momentum as the year progresses. Although 4Q14 results were healthy, they fell short of the performance in previous quarters. "Year-end destocking & heavy aircraft utilization during holiday months can impact C4Q; we are not reading too much into the volatility," the analysts added. A decline in fuel prices has reduced fuel as a percentage of total OpEx by 400 bps to 26% for carriers. The lower costs have boosted profits, which can be expected to be ploughed into cabin retrofits and deferred maintenance. Referring to the MRO conference, KeyBanc Capital Markets noted, "Overall health/growth rates of global MRO market should be major focus item. We also expect focus on increased reliance of older aircraft given sharp drop in fuel prices, as equipment stays in service longer & retirements decrease, accelerating aftermarket activity." The analysts added that the three segments that would be boosted by AM spending increases in CY15-16 are engines, interiors and connectivity. Regarding connectivity, the report stated, "Major trends of in-flight entertainment & Wi-Fi should continue to see major adoption. However, rapidly advancing on connectivity front is ability to offer predictive maintenance services from e-enabled aircraft. Additionally, recent tragedies have focused spotlight on improving aircraft tracking, which has potential to create new revenue streams & retrofit opportunities as industry finally moves away from 1970s technology." View More Analyst Ratings for COLView the Latest Analyst Ratings 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



Twitter, Inc.(TWTR) : Ian Winer was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Ian Winer, Wedbush Securities Director of Equity Trading, discussed Twitter Inc (NYSE: TWTR) on the show and felt the stock was headed lower. "Everybody on the Street has gone from short to long," Winer said as he noted how "the bulls are talking about how MAUs are backward looking." Winer noted that user base acceleration had "cooled off" and with a large market cap, it would require institutional investors to get excited about the stock in order to push it higher. "At $50 you're going to need some real institutions to come in and believe this is worth $60 or $70," Winer said. Winer concluded that "we'll find that out [more] when they report," however, it looked like Twitter was "going lower." Shares of Twitter recently traded at $50.82, up 1.86 percent. Listen to the show here: View More Analyst Ratings for TWTRView the Latest Analyst Ratings 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



 

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