The brokerage cut its 12-month price target to $270 from $305, saying it expects weaker long-term earnings growth despite what it sees as an attractive valuation. UBS lowered its 2026-2030 earnings forecasts by 5% to 9% to reflect potential automotive demand weakness and inventory risks in China. UBS said NXP is particularly exposed to a possible correction in China's auto market because about 55% of its revenue comes from automotive, while around 17% is tied to domestic China. The brokerage also argued that NXP trails peers in benefiting from the AI infrastructure boom. Related articlesUBS downgrades NXP to Neutral on China auto risks, trims PT to $270Circle split as Morgan Stanley cuts to Underweight, TD Cowen starts at BuyRaymond James cuts Cigna to Outperform on lack of near-term catalysts