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Equities research analysts at Evercore Partners initiated coverage on shares of ON Semiconductor Corp (NASDAQ:ONNN) in a research note issued to investors on Wednesday, reports. The firm set an “underweight” rating and a $8.00 price target on the stock. Evercore Partners’ price objective indicates a potential downside of 6.32% from the company’s current price.

The analysts wrote, “We initiate with an Underweight rating and $8 PT. We think shares underperform as (1) we are at least in the mid-innings of the current semi cycle, (2) Street 2015 EPS of 97c is a high bar and reflects SANYO upside, (3) growth expectations in higher margin markets are aggressive, and (4) acquisitions (Truesense, April ’14) have historically coincided with a peaking stock price, +27% since Nov 2013 (vs. NASDAQ: +9%, SOX: +18%). “From a strategy standpoint, we do not believe ON’s acquisitive nature has been beneficial. It has failed to stimulate revenue growth, been margin destructive, diluted earnings, reduced focus on the core business, and taken away from S/H returns.As such, we think a better use of its robust FCF (15e: 12% of sales) would be to reduce debt faster to set the table for more returns to S/H, preferably with a dividend. This would also help smooth price fluctuations through the cycle, provide downside support, and lift the multiple. However, we don’t expect a change in strategy soon and initiate with an Underweight.”

Shares of ON Semiconductor Corp (NASDAQ:ONNN) traded down 1.95% during mid-day trading on Wednesday, hitting $8.54. 9,652,802 shares of the company’s stock traded hands. ON Semiconductor Corp has a 52-week low of $6.80 and a 52-week high of $10.07. The stock’s 50-day moving average is $9.34 and its 200-day moving average is $8.54. The company has a market cap of $3.766 billion and a price-to-earnings ratio of 21.24.

ON Semiconductor Corp (NASDAQ:ONNN) last announced its earnings results on Thursday, May 1st. The company reported $0.17 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.15 by $0.02. The company had revenue of $706.50 million for the quarter, compared to the consensus estimate of $711.01 million. During the same quarter last year, the company posted $0.10 earnings per share. ON Semiconductor Corp’s revenue was up 6.9% compared to the same quarter last year. Analysts expect that ON Semiconductor Corp will post $0.80 EPS for the current fiscal year.

ONNN has been the subject of a number of other recent research reports. Analysts at Citigroup Inc. downgraded shares of ON Semiconductor Corp from a “neutral” rating to a “sell” rating in a research note on Friday, May 9th. They now have a $8.00 price target on the stock, down previously from $10.50. Separately, analysts at Deutsche Bank reiterated a “buy” rating on shares of ON Semiconductor Corp in a research note on Friday, May 2nd. They now have a $12.00 price target on the stock. Finally, analysts at Morgan Stanley raised their price target on shares of ON Semiconductor Corp from $7.00 to $8.00 in a research note on Friday, May 2nd. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and eight have assigned a buy rating to the stock. The company has an average rating of “Buy” and a consensus target price of $10.66.

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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