Needham & Company Upgrades Freescale Semiconductor (FSL) to Buy

Needham & Company upgraded Freescale Semiconductor (NYSE: FSL) from Hold to Buy with a price target of $20.00.

Analyst Rajvindra Gill commented, "We downgraded FSL shares from Strong Buy to Hold with our note published July 23. Shares have fallen 34% since 7/23 (vs down roughly 6% for the S&P 500), we believe on concerns of a broader global slowdown and an inventory correction in the cycle. Companies that are highly levered tend to sell off first when there are whispers of a cycle downturn. However, we think FSL has entered oversold territory. The P/E multiple on FSL has declined 42%. While we are trimming our near-term estimates related to some industrial softness (per LLTC, MCHP's commentary) and nominal signs of a global slowdown, we believe the auto vertical remains robust (FSL generated close to 50% of sales from auto) and the China LTE builds are accelerating into the 2H14 and entering 2015."

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 $16.15 yesterday.

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