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Needham & Company Maintains a 'Hold' on ON Semi (ONNN); No Surprises or Near-Term Catalysts

February 9, 2012 10:43 AM EST
ONNN Hot Sheet
Rating Summary:
    11 Buy, 6 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Needham & Company maintains a 'Hold' on ON Semi (NASDAQ: ONNN).

Analyst, Verson Essi, said, "ONNN reported Q4 results that were above expectations, guiding Q1 below consensus but likely better than feared. As expected, management cited the conditions in Thailand associated with lost production at the Sanyo facilities (which is improving). Management articulated what could possibly be a seasonal 2012 with respect to Q/Q revenue growth patterns which, if taken at the baseline guide of Q1, would imply a 2012 Y/Y revenue decline in the 7%-10% range or about double the 4% rate of decline currently reflected in the consensus forecast. While there has certainly been a sentiment discount on the group and ONNN's channel commentary is calling a bottom, we are not confident that ONNN shares can shrug off this negative revision and sustain an uptrend as Q1 progresses- especially in the absence of any catalysts. We lowered our 2012 revenue/EPS from $3.35B/$0.75 to $3.16B/$0.57 and introduced our 2013 revenue/EPS of $3.47B and $0.85."

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.


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