BofA Securities Double Upgrades ON Semiconductor (ON) to Buy

(Updated - March 1, 2021 6:32 AM EST)

BofA Securities analyst Vivek Arya upgraded ON Semiconductor (NASDAQ: ON) from Underperform to Buy with a price target of $48.00 (from $32.00).

The analyst comments "In conjunction with our global autos primer that highlights EV/AV megatrends driving the auto market, we double upgrade key vendor ON to Buy from Underperform, on rising auto content and restructuring tailwinds. We expect ON’s relatively new CEO and CFO to leverage their past turnaround experience, to exit unprofitable areas, drive a more asset-lite model and raise margins, similar to the 900bps+ expansion in GM and 2x+ in FCF% management achieved in their prior role at Cypress. We are late to recognizing ON’s turnaround potential, but we still see potential for another 20%+ stock upside as management makes the case for turnaround at their upcoming Aug-5 analyst day."

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 $40.27 yesterday.

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