Jefferies Raises Price Target on ON Semiconductor (ON) Following Acquisition Completion
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Jefferies reiterated a Hold rating on ON Semiconductor (NASDAQ: ON), and raised the price target to $13.00 (from $10.50), following the company's announcement that it has completed its acquisition of FCS for $2.4b in cash. Management expects the acquisition to be $0.20 accretive in 2017. In 2018/2019, management expects the annual accretion to be about 38/43 cents.
Analyst Mark Lipacis commented, "ON announced it has successfully completed the acquisition of FCS for $2.4b in cash. The company indicated that the acquisition would be $0.20 accretive to 2017 EPS, upon recognizing $160m in run rate synergies. We keep our Hold rating, but view the acquisition as a positive, and could become more constructive with execution on synergies and deleveraging. We increase our PT to $13."
Shares of ON Semiconductor closed at $11.52 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Mergers and Acquisitions
Related EntitiesJefferies & Co, Definitive Agreement
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