Tuesday, December 7, 2010

Fairchild Semi (NYSE:FCS) Boosted to "Buy" from Janney Montgomery Scott

Saying that most of the issues related to credit for Fairchild Semi (NYSE:FCS) have been resolved, Janney Montgomery Scott bumped up their rating on them to a "Buy."

JMS said, "4Q10 results were below expectations on weakening credit and shares were down on the results. We are lowering our FY11 estimates to reflect the increase in non-accruals but believe the company has worked through most of its credit issues. We are raising our rating to BUY based on Fifth Street's strong NII growth potential and discount valuation to its peers. Our primary concern with the name has been the estimates below company's ability to grow the reflect our projected Net portfolio and drive NII in line with Interest Income (NII) per the dividend. Fifth Street has share significantly upgraded its infrastructure, adding both."

Fairchild closed Monday at $15.31, up by $0.29, or 1.93 percent. Janney has a price target of $12.50 on them.

No comments: