Wedbush Upgrades ON Semi (ONNN) to Outperform; Poised for Strong Secular Growth & GM Expansion

February 9, 2012 11:00 AM EST
ONNN Hot Sheet
Rating Summary:
    11 Buy, 6 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 22 | Down: 8 | New: 36
Wedbush upgraded ON Semi (NASDAQ: ONNN) from Neutral to Outperform, price target raised from $10 to $12.50.

Wedbush analyst says, "While we had expected ONNN to benefit from the overall growth of the semiconductor industry given its very broad exposure, we are seeing better-than-expected pro forma gross margin expansion tailwinds as the company’s Sanyo business recovers from the Thailand floods above our prior expectations and tighter control of OpEx driving a faster-than-expected return to bottom-line growth and leverage in the model...We recommend investors buy the shares."

Wedbush raises FY12 EPS estimate from $0.60 to $0.67 and FY13 from $0.91 to $1.05.

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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