Susquehanna Remains Positive After ON Semiconductor (ON) Reports In-Line Results

Susquehanna reiterated a Positive rating and $14.00 price target on ON Semiconductor (NASDAQ: ON) following the company's 3Q earnings results. ON reported revenue of $904 mln, below consensus of $907 mln. EPS of $0.23 was in-line with consensus.

Analyst Chris
Caso commented, "ON’s guidance reflected the cyclical correction we believe is underway based on reports from around the group. We weren’t particularly surprised, as we had lowered numbers earlier this month, and guidance came in just marginally below our expectations. But we also can’t help but notice that ON has begun to weather industry downturns in much better fashion than in the past. Quarterly EPS is still growing Y/Y despite the correction ongoing in 4Q; C15 EPS will still grow Y/Y, and we still have the ever-elusive $1 in EPS and $340 mln in FCF in sight for 2016. We can only hope for better end-market demand conditions from which to drive better top-line growth. But in the meantime, we think the stock is reasonably valued at just over 11x our C16 EPS, and there is substantial leverage in the model should the global economy get out of first gear."

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 $10.28 yesterday.

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