UPDATE: RBC Capital Upgrades Freescale Semiconductor (FSL) to Outperform, Sees As Viable Acquisition Target
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Price: $15.96 -1.91%
Rating Summary:
12 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 15 | New: 13
Rating Summary:
12 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 15 | New: 13
Trade FSL Now!
(Updated - March 12, 2012 12:17 PM EDT)
RBC Capital upgraded Freescale Semiconductor (NYSE: FSL) earlier from Sector Perform to Outperform with a price target of $20.
Analyst Doug Freedman said risks have become "more transparent and well understood", which positions the stock for gains given potential EPS upside on an expected acceleration of industry orders.
He said the company's leveraged nature creates an attractive high-beta play with a higher degree of EPS sensitivity. "We estimate that each incremental percentage point in revenue growth for the full year impacts EPS by ~$0.08/year," the analyst said.
Freescale has the potential to earn $2 per share in 2013, he states.
Freedman also highlighted Freescale as a "viable acquisition target." He said the company has attractive assets either in whole or in parts, which supports the valuation. While Freedman is not aware of any current suitors, he sees a potential fit at some point with Intel (Nasdaq: INTC) and Qualcomm (Nasdaq: QCOM)), Texas Instruments (NYSE: TXN), and Microchip (Nasdaq: MCHP), among others.
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 $15.03 yesterday, with a 52 week range of $9.43-$20.97.
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RBC Capital upgraded Freescale Semiconductor (NYSE: FSL) earlier from Sector Perform to Outperform with a price target of $20.
Analyst Doug Freedman said risks have become "more transparent and well understood", which positions the stock for gains given potential EPS upside on an expected acceleration of industry orders.
He said the company's leveraged nature creates an attractive high-beta play with a higher degree of EPS sensitivity. "We estimate that each incremental percentage point in revenue growth for the full year impacts EPS by ~$0.08/year," the analyst said.
Freescale has the potential to earn $2 per share in 2013, he states.
Freedman also highlighted Freescale as a "viable acquisition target." He said the company has attractive assets either in whole or in parts, which supports the valuation. While Freedman is not aware of any current suitors, he sees a potential fit at some point with Intel (Nasdaq: INTC) and Qualcomm (Nasdaq: QCOM)), Texas Instruments (NYSE: TXN), and Microchip (Nasdaq: MCHP), among others.
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 $15.03 yesterday, with a 52 week range of $9.43-$20.97.
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