Sam Boughedda

Morgan Stanley analyst Joseph Moore lowered the price targets for several semiconductor companies Friday. He informed investors that they were lowering their 2023 number in a note to them.

Analyst said that they were trying to simulate macro deceleration. Although it seems obvious, this will be slow.

The macroeconomic picture becomes murkier as near-term fundamentals generally remain solid. Moore stated that the macroeconomic outlook for MS is for steady, moderate GDP growth in the next year. However, this will likely feel more like a decline as parts of GDP return to traditional services instead of goods. Moore also noted that the Pandemic has reshaped the performance of goods.

“As we know, it is going to take a lot of time for this to work out due to near-term supply chain issues. However, rather than talking about economic risk in a vague way, we are trying a more concrete approach for CY23. We expect a slight downturn in 2019 and then a cyclical upturn in the next year.”

Names such as NXP Semiconductor Nevada (NASDAQ:), ($180 starting at $194), have price targets ON Semiconductor Corporation (NASDAQ) (56 USD from $60), Texas Instruments(NASDAQ) (155 USD from $170), Sensata Technologies Holding NV (NYSE 🙂 ($57 Starting at $62) TE Connectivity (NYSE) ($140 Starting at $147) Amphenol Corp (NYSE:), ($75 to $79), Microchip Technology Inc., (NASDAQ:), ($81 to $85) and Marvell Technology Group, (NASDAQ:), ($62 to $58) were reduced.