Rosenblatt Raises ON Semiconductor Price Target to $85
Rosenblatt analyst Kevin Cassidy raised the price target on ON Semiconductor (NASDAQ: ON) to $85.00 (from $60.00) while maintaining a Neutral rating.
“onsemi’s business is turning up out of the multiyear “L-shaped” recovery. The recovery is based on a combination of cyclical upturn and secular new designs ramping into production.
This is similar to trends described by onsemi’s analog peer group, though onsemi’s more muted. We expect the company’s manufacturing utilization rate increase will lift gross margin.
With the ON shares up 85% since April 1st, a solid report has been anticipated. The report is positive, but not enough upside to support the current 31x NTM Non-GAAP EPS.
We are lifting our estimates, our valuation metric, and our 12-month price target to $85 (from $60).”
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