UPDATE: Goldman Sachs Upgrades STMicroelectronics

According to a research report published this morning, Goldman Sachs has upgraded STMicroelectronics STM from Neutral to Buy. In the report, Goldman Sachs commented, "Despite a weak structural cash returns and industrial positioning profile, we see a mean-reversion value opportunity for STM following the recent sell-off. We expect its 2013E c.7% dividend yield alongside a 12% free cash flow yield to provide downside support, and now see upside even when ascribing a negative carrying value of $2.5 bn for the ST-Ericsson Joint Venture, incorporating future cash burn. As a result, we upgrade STM to Buy from Neutral with a 12-month price target of €6.3 (was €7.5), as we see positive risk/reward following the recent sell-off despite continued structural challenges, especially at ST-E." STMicroelectronics closed yesterday at $4.29.