UPDATE: Canaccord Genuity Downgrades Fairchild Semi to Hold, Target Lowered to $12

In a report issued Thursday Canaccord Genuity analyst Bobby Burleson downgraded Fairchild Semiconductor International, Inc.

from Buy to Hold and lowered the price target from $16.00 to $12.00 following a soft outlook for Q4. In the report, Burleson states, “We don't see a compelling reason to buy FCS here given uncertain demand from the broader wireless market (smartphones are over 20% of revenue) and a lag before meaningful cost benefits can take hold from plant closures (big impact not until 2015).” A brief outlook for Q4 is given in the report on Fairchild Semiconductor International, “Management guided Q4 revenue to $335M-$350M, down 6% Q/Q at the mid-point ($342.5M), below the consensus estimate of $368M and our estimate of $370M. Management highlighted that Q4 revenue guidance weakness is driven by an expected inventory drain at mobile customers and seasonal decline in other segments with declines in air conditioners partially offset by flat to up industrial and flat to up automotive.” Fairchild Semiconductor is currently up 0.87% at 13.96.