Jefferies Raises Price Target on ON Semiconductor (ON) Following Acquisition Completion

September 20, 2016 8:00 AM EDT
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Price: $12.09 +2.28%

Rating Summary:
    9 Buy, 2 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 26 | Down: 29 | New: 38
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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."

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

Shares of ON Semiconductor closed at $11.52 yesterday.

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