ON Semiconductor rises as Summit Insights upgrades, sees analog outperformance
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ON Semiconductor (NASDAQ:ON) shares rose less than 1% in mid-day trading on Monday as investment firm Summit Insights upgraded the semiconductor company, stating it sees the potential for outperformance in the analog space.
Analyst Kinngai Chan raised the firm's rating on ON Semiconductor (ON) shares to buy, noting that while certain parts of the automotive space are seeing some slowness, ON (ON) is likely to offset any moderation due to its "unique" position in the product market and ability to grow its content per car.
"While we expect ON to experience some financial headwinds in the near-term, we believe ON can outperform the analog market with its unique product positioning in the automotive market and will benefit from the ramp of its [300 millimeter East Fishkill, NY] fab in the medium-to-longer-term," Chan wrote in a note to clients.
Chan also added that ON (ON) is likely to be able to manage any decline in gross margins as it expands its silicon carbide production and its fab in East Fishkill, NY transitions to silicon carbide.
Separately, on Monday, investment firm B. Riley reiterated its buy rating on ON Semiconductor (ON) and raised its per-share price target to a Wall Street high of $105.
ON Semiconductor (ON) reported fourth-quarter results on Monday that topped Wall Street expectations and issued a slightly weaker-than-expected forecast for the first quarter.
Analysts are universally bullish on ON Semiconductor (ON). It has a BUY rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Additionally, Seeking Alpha's quant system, which consistently beats the market, rates ON a BUY.