Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: Linear's second-quarter results came in on par with expectations, but it projected a robust third quarter, downplaying fears that the global semiconductor industry was slowing down. The sector had hit a speed bump halfway through 2011 due to softening gadget demand and broader economic conditions, along with slowing PC shipments.
Now what: Canaccord Genuity added some additional detail specific to Fairchild, calling it an aggressive play for the recovery. Analyst Bobby Burleson believes Fairchild is well-positioned to benefit as channel inventories draw down. Burleson also sees Fairchild's gross margins ticking higher as utilization rates increase, leading him to reiterate his buy rating and $15 price target.
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At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Linear Technology. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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