Freescale Semiconductor (FSL) Numbers Trimmed at Piper Jaffray, Bullish View Maintained

Piper Jaffray analyst Ruben Roy reiterated an Overweight rating but trimmed his price target on Freescale Semiconductor (NYSE: FSL) to $28.00 (from $31.00) following Q3 results.

Roy commented, "Management execution continued in Q3 with another solid quarter of Y/Y revenue growth and improvement in gross margin. Operating margin and cash flow metrics also improved in Q3. Q4 outlook is modestly disappointing with the midpoint of revenue guidance at $1.1B, lower than the current consensus estimate of $1.18B. Given lower than expected utilization levels, FSL is guiding Q4 gross margin declines of between 75-100 basis points. Positive trends continue, though, in our view as FSL is on track to deliver roughly 11% Y/Y revenue growth if the midpoint of Q4 guidance is achieved. We continue to believe that the company's revamped product road-map is enabling share gains in key end markets. That said, for now with near-term end market headwinds, we are modestly reducing our 2015 estimates."

The firm trimmed FY 2014 EPS from $1.47 to $1.46 and FY 2015 EPS from $1.95 to $1.75.

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 $18.06 yesterday.

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