JP Morgan Color on Freescale Semiconductor Initiation

JP Morgan, which initiated coverage of Freescale Semiconductor (NYSE: FSL), is providing some color on the stock.

“We believe the company has reengineered its strategy and operations over the past several years, and has reemerged as a leader in the embedded processing segment of the semiconductor industry,” JP Morgan writes. “We believe a combination of faster-than-industry top-line growth, optimization of its operations, and continued margin expansion and deleveraging should drive double-digit (%) earnings growth over the next several years.

“In addition, our positive view on overall semiconductor fundamentals in the 2H of this year, combined with improving sentiment on semiconductor stocks, should provide a further tailwind for FSL.”

Freescale Semiconductor closed Friday at $19.75.