MKM Partners Starts ON Semi (ONNN) at Buy
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Price: $11.70 --0%
Rating Summary:
7 Buy, 8 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
7 Buy, 8 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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MKM Partners initiates coverage on ON Semi (NASDAQ: ONNN) with a Buy. PT $8.00.
The firm comments, "Due to its broad exposure, ONNN's revenue trends are closely related to total analog semi revenue, which, in turn, is correlated to U.S. nominal GDP. Our framework analysis of analog semi revenue to GDP implies that after a down 2012 for semis, during which ONNN undergrew the space due in part to difficulties at its recently acquired Sanyo Semiconductor segment, analog revenue is likely to increase 9% in 2013 and 14% in 2014. We model more modest rates of revenue growth (5% and 11%) for ONNN as the company works to restructure Sanyo, but with consensus implying that 2013 will be a no-growth year and the stock trading at 7.6x/8.7x our/consensus 2014E EPS, we see risk/reward skewed to the upside on the potential for revenue and earnings outperformance relative to consensus."
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 $6.61 yesterday.
The firm comments, "Due to its broad exposure, ONNN's revenue trends are closely related to total analog semi revenue, which, in turn, is correlated to U.S. nominal GDP. Our framework analysis of analog semi revenue to GDP implies that after a down 2012 for semis, during which ONNN undergrew the space due in part to difficulties at its recently acquired Sanyo Semiconductor segment, analog revenue is likely to increase 9% in 2013 and 14% in 2014. We model more modest rates of revenue growth (5% and 11%) for ONNN as the company works to restructure Sanyo, but with consensus implying that 2013 will be a no-growth year and the stock trading at 7.6x/8.7x our/consensus 2014E EPS, we see risk/reward skewed to the upside on the potential for revenue and earnings outperformance relative to consensus."
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 $6.61 yesterday.
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