Market Overview

UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Freescale Semiconductor

Related FSL
Benzinga's Top Upgrades
Evercore ISI Upgrades Freescale Semiconductor To Buy
Malaysia Airlines Shares Tumble After Jet Vanishes (Fox Business)

In a report published Wednesday, Citigroup reiterated its Buy rating Freescale Semiconductor (NYSE: FSL), and raised its price target from $15.00 to $18.00.

Citigroup noted, “After missing 4 of the last 6 quarters, Freescale guided 1Q13 sales above consensus, returning to positive y/y growth after 6 quarters of consecutive decline. Freescale's comments mirror those of several of their peers, adding conviction that cyclical recovery is nigh. Noting that the average trough-to-peak recovery in quarterly revenues is 26%, an eventual return to profit (~$950M in sales), normal utilization rates ($1.05B), and therefore higher gross margin (>45%) seems likely. With deleveraging an incremental opportunity, we suspect conviction in Freescale's earnings leverage will also grow. We reiterate our Buy rating and increase our PT to $18, based on our usual valuation methodology.”

Freescale Semiconductor closed on Tuesday at $12.39.

Latest Ratings for FSL

Dec 2014Evercore ISIUpgradesHoldBuy
Oct 2014Pacific CrestMaintainsOutperform
Jul 2014Morgan StanleyUpgradesUnderweightEqual-weight

View More Analyst Ratings for FSL
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Price Target Analyst Ratings


Related Articles (FSL)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Benzinga Professional