UPDATE: Morgan Stanley Reiterates on Freescale Semiconductor Ltd. on Improving Growth, Muted Operating Leverage

In a report published Friday, Morgan Stanley analyst Craig Hettenbach reiterated an Underweight rating on

, and raised the price target from $15.00 to $22.00. In the report, Morgan Stanley noted, “Freescale is executing well and clearly we have been on the wrong side of this one as growth has been ahead of our expectations. More so, the company's recent equity offering/debt paydown has led to improved sentiment around its balance sheet and helped the float, with the stock up 40% vs. the SOX index up 9% since the capital raise on 2/12/14. However, this strong outperformance and the potential of a pause in wireless infrastructure (15-20% of sales) by Q3, suggests greater potential downside risk vs. the group from here. "We are Underweight, but increase our PT to $22 from $15 to reflect heightened sensitivity to enterprise value on valuation, higher estimates and slightly higher multiple.” Freescale Semiconductor Ltd. closed on Thursday at $25.88.