J.P. Morgan Reiterates Overweight Rating On Fairchild Semiconductor

According to J.P. Morgan, Fairchild Semiconductor FCS is scheduled to report its 2Q11 on Thursday. J.P. Morgan said that it expects an in line 2Q11 print but tempered 3Q11 outlook due to distribution weakness and softer demand. “We are only trimming our 2H11 estimates despite the weakness, as we believe channel inventory is healthy and within the company's target range. Additionally, we think FCS' stock price decline of 25% from its recent peak has priced in the downside to estimates. We thus remain constructive on FCS driven by margin expansion and secular growth trends and reiterate our OW rating.” Fairchild Semiconductor closed yesterday at $15.85.