Credit Suisse Upgrades ON Semiconductor Corp. to “Outperform” (ONNN)
ON Semiconductor Corp. (NASDAQ:ONNN) was upgraded by investment analysts at Credit Suisse from a “neutral” rating to an “outperform” rating in a note issued to investors on Tuesday, TheFlyOnTheWall.com reports. The firm currently has a $12.00 price target on the stock, up from their previous price target of $8.00. Credit Suisse’s price objective would suggest a potential upside of 35.44% from the company’s current price.
The analysts wrote, “Our upgrade is based upon three key drivers: (1) after 11 quarters, the Sanyo acquisition is no longer a headwind to profitability and is likely able to drive $0.05-0.07 cents of accretion to 2014 even on down y/y revenue, (2) management has little to no appetite for large acquisitions allowing them to focus on driving the operating model to target (41% GM versus C4QE GM of 34.3%) and to prioritize cash flow to buy back stock ($30.2m in C3Q13 versus $75.3m TTM and authorization of $202.4m) and (3) potential market share gains in power management in PCs from both ISIL and TXN,” the report noted. “Our analysis suggests that ONNN has EPS potential of $1.00 at target GM and $0.10 more EPS potential at peak GM than FCS (UP), despite trading at 12.0 times FTM EPS versus 17.9x for FCS and have significantly less exposure to handsets (~10% versus 25% for FCS). We see a compelling argument for an ONNN/FCS pair trade.”
A number of other firms have also recently commented on ONNN. Analysts at FBR Capital Markets raised their price target on shares of ON Semiconductor Corp. from $8.50 to $10.50 in a research note to investors on Monday. They now have an “outperform” rating on the stock. Separately, analysts at Goldman Sachs Group Inc. downgraded shares of ON Semiconductor Corp. from a “buy” rating to a “neutral” rating in a research note to investors on Thursday, January 2nd. Finally, analysts at MKM Partners downgraded shares of ON Semiconductor Corp. from a “buy” rating to a “neutral” rating in a research note to investors on Monday, November 18th. They now have a $8.00 price target on the stock, down previously from $10.00. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the stock. The company currently has an average rating of “Buy” and a consensus target price of $8.96.
In other ON Semiconductor Corp. news, SVP George Cave unloaded 10,000 shares of the stock on the open market in a transaction dated Wednesday, January 8th. The shares were sold at an average price of $8.50, for a total value of $85,000.00. Following the completion of the sale, the senior vice president now directly owns 241,191 shares of the company’s stock, valued at approximately $2,050,124. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.
ON Semiconductor Corp. (NASDAQ:ONNN) traded up 0.74% on Tuesday, hitting $8.86. The stock had a trading volume of 7,294,352 shares. ON Semiconductor Corp. has a 52-week low of $6.80 and a 52-week high of $8.97. The stock’s 50-day moving average is $7.82 and its 200-day moving average is $7.54. The company’s market cap is $3.938 billion.
ON Semiconductor Corp. (NASDAQ:ONNN) last issued its quarterly earnings data on Thursday, October 31st. The company reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.01. The company had revenue of $715.40 million for the quarter, compared to the consensus estimate of $716.32 million. During the same quarter in the previous year, the company posted $0.12 earnings per share. The company’s revenue for the quarter was down 1.4% on a year-over-year basis. Analysts expect that ON Semiconductor Corp. will post $0.53 EPS for the current fiscal year.
ON Semiconductor Corporation (NASDAQ:ONNN) designs, manufactures and markets a portfolio of semiconductor components that address the design needs of electronic systems and products.
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