Goldman Sachs Upgrades STMicroelectronics (STM) to Buy

Goldman Sachs upgraded STMicroelectronics (NYSE: STM) from Neutral to Buy with a price target of $8.25 (down from $9.85), saying the sell-off creates a "mean-reversion opportunity."

The firm said despite weak structural cash returns and industrial positioning profile, they see a mean-reversion value in the stock. They said the 2013 c.7% dividend yield alongside a 12% free cash flow yield will provide downside support and they see upside even when ascribing a negative carrying value of $2.5 bn for the ST-Ericsson Joint Venture.

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

Shares of STMicroelectronics closed at $5.82 yesterday.

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