UBS upgrades Nordic Semiconductor, sees stable revenue, resilient pricing
08/02/2024 11:30
** UBS upgrades Nordic Semiconductor NOD.OL to "neutral"
from "sell", citing potential for revenue stabilization and
resilient pricing ahead for the Norwegian fabless chip maker
** "Whilst visibility remains low, we believe we are
potentially approaching the bottom," the broker says, and
forecasts a quarter-on-quarter growth in Q2 revenue to $97
million
** After the company posted multiple misses on guidance in
the past 12 months, the broker expects estimates to be
"sufficiently derisked"
** Pricing has remained resilient through 2023 and into
2024, reflecting trends observed among other industry players,
which the broker finds "reassuring"
** "At current levels we think the lack of visibility is
priced in," the broker says, pointing to long-term growth and
profitability projections aligning with its own estimates
** Nordic Semiconductor's shares are up 5.5% as of 1128 GMT
(Reporting by Tilla Sjaavaag)
((tilla.sjaavaag@thomsonreuters.com; +48 58 7696600;))