U.S. Markets close in 3 hrs 24 mins
  • S&P 500

    4,578.36
    +65.32 (+1.45%)
     
  • Dow 30

    34,632.61
    +610.57 (+1.79%)
     
  • Nasdaq

    15,379.30
    +125.25 (+0.82%)
     
  • Russell 2000

    2,195.72
    +48.30 (+2.25%)
     
  • Crude Oil

    66.97
    +1.40 (+2.14%)
     
  • Gold

    1,765.30
    -19.00 (-1.06%)
     
  • Silver

    22.35
    +0.01 (+0.05%)
     
  • EUR/USD

    1.1306
    -0.0017 (-0.1470%)
     
  • 10-Yr Bond

    1.4610
    +0.0270 (+1.88%)
     
  • Vix

    27.52
    -3.60 (-11.57%)
     
  • GBP/USD

    1.3304
    +0.0027 (+0.2009%)
     
  • USD/JPY

    113.1400
    +0.3600 (+0.3192%)
     
  • BTC-USD

    56,628.17
    -1,875.66 (-3.21%)
     
  • CMC Crypto 200

    1,440.56
    +1.68 (+0.12%)
     
  • FTSE 100

    7,129.21
    -39.47 (-0.55%)
     
  • Nikkei 225

    27,753.37
    -182.25 (-0.65%)
     

Why BofA Is Double Upgrading ON Semiconductor

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

ON Semiconductor Corp (NASDAQ: ON) faces improving restructuring and autos tailwinds, according to BofA Securities.

The ON Semiconductor Analyst: Vivek Arya upgraded ON Semiconductor from Underperform to Buy, while raising the price target from $32 to $48.

The ON Semiconductor Thesis: The company’s new CEO and CFO could leverage their past turnaround experience to exit unprofitable areas, drive “a more asset-lite model” and achieve margin expansion, Arya said in the upgrade note.

“We are late to recognizing ON’s turnaround potential, but we still see potential for another 20%+ stock upside as management makes the case for turnaround at their upcoming Aug. 5 analyst day,” he added.

The analyst further mentioned that although it could take three to four quarters for ON Semiconductor’s restructuring efforts to “bear fruit,” there is potential for the company to:

  • Exit “low-margin consumer, industrial and communications products”

  • “Raise prices strategically”

  • Lower its capital expenditure towards 6%, in-line with its peers

  • Use lower cost 300mm fabs

ON Price Action: Shares of ON Semiconductor had risen by 2.88% to $41.43 at the time of publication Monday.

(Photo: ON Semiconductor)

Latest Ratings for ON

Feb 2021

Truist Securities

Maintains

Buy

Feb 2021

Mizuho

Maintains

Buy

Feb 2021

Deutsche Bank

Maintains

Buy

View More Analyst Ratings for ON
View the Latest Analyst Ratings

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.