Deutsche Bank Says Fairchild Semiconductor Fairly Valued

Deutsche Bank is out with a research report on Fairchild Semiconductor FCS with a Hold rating and a $18 price target on shares. In a note to clients, Deutsche Bank writes, "FCS delivered solid 2Q11 results despite macro fears as the company continued to gain share in targeted areas (SPM, Auto etc.). While 3Q guidance for GM to fall is an incremental negative vs. our prior est, we believe much of the decline is due to FCS once again taking a conservative (and admirable) approach to inventory management. Overall, we remain constructive on FCS's structural improvements but believe the shares are fairly valued especially given our slight reduction to EPS ests (lower GM). Maintain Hold rating and $18 P/T." Shares of FCS are up 19 cents to $16.32.