Needham & Company Likes Risk/Reward of Freescale Semiconductor (FSL), Starts at Buy

September 27, 2012 8:27 AM EDT Send to a Friend
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Price: $40.46 -0.1%

Rating Summary:
    13 Buy, 8 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 7 | Down: 23 | New: 27
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Needham & Company initiates coverage on Freescale Semiconductor (NYSE: FSL) with a Buy rating and price target of $12.00.

"With the shares down 50% from its IPO in May 2011, we like the risk/reward profile at these levels," said analyst Rajvindra S. Gill.

"There are three fundamental reasons for our bullish stance,” said Gill. “1) deleveraging story with predictable interest expense reduction leading to significant EPS accretion and lower costs of capital; 2) gross margin expansion driving significant leverage in the model; and 3) exposed to multi-year secular trends in the semiconductor industry (i.e., increasing semiconductor content in automotive market, rapid migration to LTE networks and increasing ARM penetration in MCU market)."

For an analyst ratings summary and ratings history on Freescale Semiconductor click here. For more ratings news on Freescale Semiconductor click here.

Shares of Freescale Semiconductor closed at $9.19 yesterday.

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