FBR Capital Markets Maintains Outperform, $19 PT on Fairchild Semiconductor International on Growth Outlook
FBR Capital Markets reiterates its Outperform rating on Fairchild Semiconductor International (NYSE: FCS) and maintains its price target of $19 a share.
FBR Capital Markets comments, "Growth in mobile still the plan despite macro choppiness. Fairchild is now a handset growth play, in our view, a marked departure from its historical roots. Management suggests that mobile revenues can grow by 30%–40% annually this year (2012) and again in 2013 as the firm ramps its broadened product offering with key customers like Apple and Samsung. With mobile now roughly 20% of sales, mobile shipments could comprise nearly 30% of revenues exiting 2013, a meaningful shift. Further, mobile products have gross margins of roughly 50%, much better than the firm's company average of 35%–40%, a positive as mobile makes up a bigger piece of the mix."
FCS closed at $12.41 on Monday.
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