Piper Jaffray Upgrades ON Semiconductor (ONNN) to Overweight; Raises 2010 Estimates

November 5, 2009 7:59 AM EST

Piper Jaffray upgrades ON Semiconductor (Nasdaq: ONNN) from Neutral to Overweight. Price target $9.

Piper analyst says, "We are up grading ONNN to Overweight as we believe shares have already anticipated weakness in Q1, down 25% from their closing high on 9/10/09. While we believe that weakness in Q1 is likely, share gains in the PC market are likely to mitigate this effect as well as its 35% to 45% exposure to communications, industrial and medical end markets. Moreover, we believe that ONNN is well positioned to grow earnings as it consolidates its manufacturing facilities and continues to reduce its debt. In addition, given the current tight supply and the reduction in industry wide capacity, we believe that as demand recovers in 2H10 ONNN will be well positioned to benefit. In addition, a weak dollar also makes the company more competitive against its European and Japanese rivals...Our CY 2010 estimate goes to $0.60 on $2.0 billion, from $0.51 on $1.84 billion."

To see more analyst ratings on ONNN Click Here.

ON Semiconductor Corporation offers power, analog, digital signal processing, mixed signal, logic, data management semiconductors, memory, and standard component devices worldwide.

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