Goldman Sachs Maintains Buy on NXP Semiconductors N.V.

Goldman Sachs maintains its Buy rating on NXP Semiconductors (NASDAQ: NXPI) after participating in a conference call with NXP's management.

In a note to clients, Goldman Sachs writes, "NXP remains one of our favorite stocks even after Friday's 15% move. We believe NXP's projected doubling of earnings in 2011 on no revenue growth is unique, as we expect restructuring to drive 625 bps of gross margin expansion, with additional benefit from lower interest expense. The meeting leaves us incrementally positive on its ability to further delever by several hundred million dollars. Likely EPS and multiple expansion from this could drive NXP above $20 as these dynamics unfold."

Goldman Sachs has an $18 price target on NXPI.