FBR Capital Markets Reiterates Outperform Rating, $19 PT on Fairchild Semiconductor

In a report published Monday, FBR Capital Markets reiterated its Outperform rating and $19.00 price target on Fairchild Semiconductor International (NYSE: FCS).FBR noted, “While the shares are digesting recent gains near term, we are constructive on FCS for a 2012 cyclical recovery and inventory replenishment good news, and we think it will push and pull higher over the year. Investors are increasingly embracing Fairchild as a smartphone and Apple/Samsung play, a plus. Fairchild is a better firm than in past cycles, with more industrial exposure, proprietary product exposure, financial stability, and with product cycles in handset possibly pushing earnings power up toward $2.00 fairly soon. In addition, business volatility (cyclical revenue, margin, or inventory swings) has declined versus prior cycles, owing to management's execution, possibly pushing valuation multiples higher over time.”Fairchild Semiconductor International closed on Friday at $12.95.