Morgan Stanley Raises ON Semiconductor Price Target to $85

Morgan Stanley analyst Joseph Moore raised the price target on ON Semiconductor (NASDAQ: ON) to $85.00 (from $64.00) while maintaining a Equalweight rating.

“With ON +82% YTD and almost 20% over the L5D, it’s clear that expectations have meaningfully come up since last quarter, which was an overall in-line print.

Following the positive analog prints over the last week, a better-than-feared auto backdrop, and improving power demand, we do believe upward estimate revisions are in the cards, though we see the largest delta as weighted toward 2H, with LT visibility still uncertain.

Additionally, we are raising our PT multiple from 15x to 20x, a premium to ON’s historical average of 15x driven by the analog/cyclical acceleration and greater exposure to diversified power markets, yielding a PT increase from $64 to $85.”

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