Why Are NXP Semiconductors Shares Falling Premarket?

UBS analyst Francois-Xavier Bouvignies initiated coverage of NXP Semiconductors NV NXPI with a Sell rating and $170 price target, implying a 28.84% downside. 

• While the analyst believes the company will "remain a leader in its product categories with a solid business," he sees the automotive division's growth underperforming the automotive semis market, "due predominantly to a relatively lower content opportunity in electronic vehicles vs. its peers." 
• As NXP Semiconductors currently trades at an 8% discount to the sector vs. 20% on average historically, the analyst believes "this potential underperformance is not priced in."
• NXP is a leading supplier of high-performance mixed-signal products with a significant market share in the automotive market. NXP also serves industrial and Internet of Things, mobile, and communications infrastructure.
• NXP's Q3 FY21 revenue of $2.86 billion grew 26% year-on-year, beating the consensus of $2.85 billion.
• NXP sees Q4 revenue of $2.93 billion - $3.08 billion above the consensus of $2.91 billion.
• Price Action: NXPI shares traded lower by 2.05% at $234 in the premarket session on the last check Wednesday.