Wedbush Assumes Coverage on ON Semi (ONNN) at Neutral; Broad Exposure to Weakening End Markets; Look for Reset to Street Estimates
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Price: $11.70 --0%
Rating Summary:
7 Buy, 8 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 8 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush assumes coverage on ON Semi (NASDAQ: ONNN) with a Neutral (from Outperform). PT $8.50 (from $13).
Wedbush analyst says, "While we think for investors with a longer-term horizon that risk/reward is fairly compelling at this level given our constructive view on the company’s long-term strategy to diversify its product portfolio and end markets, we don’t think we can see meaningful appreciation to the stock until (1) we get a reset to Street expectations, (2) visibility improves on consumer demand and IT spending trends, and (3) the balance sheet shows more improvement as the debt has fairly sizeable payments due in 2012 and 2013 which could potentially limit available capital."
"We look for Q3 revenue to likely come in at the low end of ONNN’s guidance range and below Street estimates and for ONNN to provide tempered guidance for Q4. We are modeling Q3 pro forma EPS of $0.22 on revenue of $895MM, below Street estimates ($0.24/$907MM)."
For more ratings news on ON Semi click here and for the rating history of ON Semi click here.
Shares of ON Semi closed at $7.28 yesterday.
Wedbush analyst says, "While we think for investors with a longer-term horizon that risk/reward is fairly compelling at this level given our constructive view on the company’s long-term strategy to diversify its product portfolio and end markets, we don’t think we can see meaningful appreciation to the stock until (1) we get a reset to Street expectations, (2) visibility improves on consumer demand and IT spending trends, and (3) the balance sheet shows more improvement as the debt has fairly sizeable payments due in 2012 and 2013 which could potentially limit available capital."
"We look for Q3 revenue to likely come in at the low end of ONNN’s guidance range and below Street estimates and for ONNN to provide tempered guidance for Q4. We are modeling Q3 pro forma EPS of $0.22 on revenue of $895MM, below Street estimates ($0.24/$907MM)."
For more ratings news on ON Semi click here and for the rating history of ON Semi click here.
Shares of ON Semi closed at $7.28 yesterday.
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