Fairchild Semiconductor Tracking Towards Middle of Guidance, According to FBR

FBR Capital Markets has published a research report on Fairchild Semiconductor

as the company is showing revenues tracking towards the middle of guidance expectations despite impacts to its inventories. In the report, FBR writes, "Recent checks with distributors and others suggest Fairchild Semi's 2Q11 revenues are likely tracking toward the middle of guidance, and that 3Q11 revenues will grow sequentially, though much time and uncertainty remain between now and late mid July revenue guidance. Growing industrial inventories do represent an ongoing risk as downstream industrial inventory dollars grew 10% QOQ in 1Q11, meaning that five to 10 points of revenue take-rate adjustments could affect Fairchild and others in 2H11 versus normal seasonality, a small near-term risk." FBR maintains its Outperform rating and $25 price target. Fairchild Semiconductor closed Friday at $17.07