Fairchild Semi (FCS) Price Target Raised to $19 at Susquehanna

Susquehanna analyst Chris Caso raised his price target on Fairchild Semi (NASDAQ: FCS) to $19.00 (from $15.00) following results and the conference call but stopped short of upgrading the stock and maintained a Neutral rating, saying much of the good news is reflected in the stock.

Caso commented, "FCS put up a solid quarter, with constructive guidance for the remainder of the year. We think the bull thesis on FCS contains four main elements, namely 1) a product cycle catalyst from adaptive charging at Samsung/AAPL, which FCS expects to accelerate in 2H; 2) benefit to 2H GMs from fab closures; 3) stability in the industrial/auto/appliance business, and 4) accretion from buybacks as the company has committed to use 100% of free cash flow to buy back stock. We don’t take issue with any of these points, but with the stock higher and these expectations clearly laid out by FCS on this call, we think much of this is now reflected in the stock. We would expect to have visibility regarding FCS’ progress against these goals as the year progresses, which will allow us to revisit our view."

2Q estimates move to $370 mln/$0.20, from $362 mln/$0.12. C15 estimates move to $1.49 bln/$0.93, from $1.47 bln/$0.76. Our C16 estimates move to $1.53 bln/$1.42, from $1.55 bl/$1.42.

For an analyst ratings summary and ratings history on Fairchild Semi click here. For more ratings news on Fairchild Semi click here.

Shares of Fairchild Semi closed at $18.98 yesterday.

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