UPDATE: Goldman Sachs Upgrades Federal-Mogul Corporation to Neutral, Raises PT Following 1Q13 Beat

In a report published Thursday, Goldman Sachs analyst Patrick Archambault upgraded the rating on Federal-Mogul Corporation

from Sell to Neutral, and slightly raised the price target from $5.00 to $6.00. In the report, Archambault noted, “We are upgrading shares of FDML to Neutral from Sell. The ratings change reflects upward revisions we are making to our estimates and price target following the 1Q13 beat, and the stock's recent underperformance. While significant concerns remain, particularly with respect to stemming FCF burn, we now see risk reward as more evenly balanced with 4% upside to our new 6 month EV/EBITDA and P/E based price target of $6. Since we added FDML to the Americas Sell List on March 1, 2013 shares have declined 22%, vs. the S&P 500 up 4%. Over the past 12 months the shares are down 58% vs. a gain of 15% for the S&P 500.” Federal-Mogul Corporation closed on Wednesday at $5.77.