FBR Capital Maintains an 'Outperform' on Fairchild Semi (FCS); Business Remains Robust; Discretes a Solid Investment Area
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Price: $19.86 --0%
Rating Summary:
3 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
3 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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FBR Capital maintains an 'Outperform' on Fairchild Semi (NYSE: FCS), PT $24.
FBR analyst says, "Recent channel checks suggest Fairchild Semi's 1Q11 revenues are likely tracking in the upper half of guidance, and that 2Q11 revenues should grow sequentially, in line to slightly better than Street estimates, and an incremental positive. Regarding the tragic Japanese earthquake, we believe there will be little impact to Fairchild's 1Q11 results, but with undetermined impacts in calendar 2Q11. Fairchild has only about 5% revenue exposure to Japan, but its automotive business could be negatively impacted from plant shutdowns and production delays, and prices for raw silicon wafers could move higher. On the other hand, Fairchild's selling prices for IGBTs and FETs could possibly increase by 3%–5% given production disruptions at Japanese competitors like Rohm, Hitachi, and Renesas. We still get much investor pushback on FCS here at $17, surprising given our view that EPS run rates can ramp north of $2/share, perhaps as soon as sometime in 2012, a plus."
For more ratings news on Fairchild Semi click here and for the rating history of Fairchild Semi click here.
Shares of Fairchild Semi closed at $17.98 yesterday.
FBR analyst says, "Recent channel checks suggest Fairchild Semi's 1Q11 revenues are likely tracking in the upper half of guidance, and that 2Q11 revenues should grow sequentially, in line to slightly better than Street estimates, and an incremental positive. Regarding the tragic Japanese earthquake, we believe there will be little impact to Fairchild's 1Q11 results, but with undetermined impacts in calendar 2Q11. Fairchild has only about 5% revenue exposure to Japan, but its automotive business could be negatively impacted from plant shutdowns and production delays, and prices for raw silicon wafers could move higher. On the other hand, Fairchild's selling prices for IGBTs and FETs could possibly increase by 3%–5% given production disruptions at Japanese competitors like Rohm, Hitachi, and Renesas. We still get much investor pushback on FCS here at $17, surprising given our view that EPS run rates can ramp north of $2/share, perhaps as soon as sometime in 2012, a plus."
For more ratings news on Fairchild Semi click here and for the rating history of Fairchild Semi click here.
Shares of Fairchild Semi closed at $17.98 yesterday.
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