Goldman Sachs Upgrades Freescale Semiconductor (FSL) to Buy

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Goldman Sachs upgraded Freescale Semiconductor (NYSE: FSL) from Neutral to Buy with a price target of $14.50, saying they expect the company to grow EPS significantly faster than peers over the next 12 to 24 months as the semi cycle improves.

"We had been Neutral-rated on the stock despite the high potential return to our price target, as Freescale’s EPS is very sensitive to changes in revenue given that it is 6X net levered on 2013E EBTIDA," the firm comments. "However, with Street estimates reset post 3Q12 guidance and industry supply lean, we believe the probability of further Street estimate cuts in the near term is lower. Moreover, we expect EPS will be up significantly in 2013 and 2014 driven by a strong supply-driven semi cycle, and potentially be well ahead of consensus."

The firm sees EPS improving from ($0.19) in 2012 to $0.95 in 2013 and $1.70 in 2014.

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 $11.19 yesterday, with a 52 week range of $8.43-$17.84.

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