Jefferies Raises Price Target on ON Semi (ONNN) After Q4, Sees Expanding Gross Margins

Jefferies raised its price target and adjusted estimates on ON Semi (NASDAQ: ONNN) following 4Q11 revs that beat consensus by $8m and Non-GAAP EPS by $0.06 driven by better gross margins and opex. MarQ revenue guide was 2.4% below consensus estimates.

The price target goes from $9.50 to $11. Q1 EPS goes down from $0.12 to $0.11, FY12 goes from $0.75 to $0.71 and FY13 from $1.25 to $1.13.

The firm comments, "Order trends are improving and management believes 1Q is the bottom. We model gross margins to expand by 450 bps between 1Q and 4Q12, and view our estimates as being conservative. Our price target is $11."

For an analyst ratings summary and ratings history on ON Semi click here. For more ratings news on ON Semi click here.

Shares of ON Semi closed at $9.12 yesterday, with a 52 week range of $6.53-$11.87.

---

Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!

You May Also Be Interested In

• Barclays Maintains an 'Equalweight' on J. C. Penney (JCP); Slashing PT on Disappointing Results
• Barclays Maintains an 'Overweight' on Camelot Information Systems (CIS); Q1 Trends Mostly In-line
• UBS Maintains a 'Neutral' on Ralcorp Holdings (RAH); Trimming Numbers After Q2 Miss

Create E-mail Alert Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Jefferies & Co

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?

Follow StreetInsider.com On Twitter