ON Semiconductor (ON) Gross Margin Expansion is Likely to Take a Pause - Susquehanna

Susquehanna analyst Christopher Rolland reiterated a Positive rating and $77.00 price target on ON Semiconductor (NASDAQ: ON) noting the gross margin expansion is likely to take a break in 2H22 as SiC ramps and in 1H23 as East Fishkill transitions. He also pointed out that macro is a wild card although little impact has been felt yet.

The analyst stated "Over the past few years, ON has pulled various GM levers, resulting in almost 20% of expansion. Of late, the sales of Belgium/South Portland fabs are expected to contribute another ~$60M of fixed-cost savings. We believe there are other opportunities to reduce the company’s footprint, resulting in over $100 million of total savings."

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 $58.04 yesterday.

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