Deutsche Bank Cuts Price Target on Nordic Semiconductor, Maintains Rating From Investing.com

Deutsche Bank published its rating for the shares of on Monday Nordic Semiconductor ASA (OL::NO) adjusted. The price target was lowered from NOK 130 to NOK 115, while the Hold recommendation was maintained. This adjustment came following the company’s Capital Markets Day (CMD) as expectations of a new strategic direction by the new CEO were not met.

The bank’s analyst expressed disappointment, particularly with the progress of the nRF54 series and the company’s handling of its loss-making wireless operations. Nordic Semiconductor had signaled that the nRF54 series is not expected to make a significant contribution to financial results until 2026, with only a moderate impact expected in 2025. Unfortunately, forecast revenue growth for 2025 could be revised downwards to below 17% – a significant downside from the original forecast of 32%. This could result in net profits disappearing completely.

During the CMD, it was also hinted that the company’s high-end product, the “H series”, may not achieve the “premiumization” effect originally expected. It was noted that customers view the H-Series as oversized, which could result in a shift in volume towards the cheaper “L-Series” products. These are priced closer to the traditional $1 level.

The analyst expressed concern that this shift could increase competitive pressure for Nordic Semiconductor, particularly from companies like Silicon Labs and Chinese manufacturers like Espressif and Telink. The Hold recommendation reflects a cautious stance on the company’s stock given these developments.

This translation was created using artificial intelligence. For further information, please see our Terms of Use.