Semiconductor exchange traded funds were among the worst-performing sector ETFs on Monday after Wall Street analysts downgraded Fairchild Semiconductor International (NYSE: FCS).
Fairchild was cut to neutral from outperform at Robert W. Baird & Co. on expectations of a decline in semiconductor orders this quarter, Bloomberg reported. The chipmaker’s shares were down 7%.
The stock is a holding in PowerShares Dynamic Semiconductor (NYSEArca: PSI) and SPDR S&P Semiconductor (NYSEArca: XSD). Both ETFs slipped more than 1% on Monday.
Separately, Miller Tabak & Co. analysts on Monday reiterated their buy rating on Fairchild.
“With the downdraft seen in the market over the past several weeks Fairchild’s stock price has come well off its recent high,” they wrote in a report. “We see no fundamental reason for the stock decline and are positive on the outlook for the June quarter and also remain positive on the remainder of the year.”
The sector ETFs lost ground on Friday after National Semiconductor reported quarterly results. [Semiconductor ETFs Down Again]
PowerShares Dynamic Semiconductor
