UPDATE: Goldman Sachs Downgrades ON Semiconductor to Neutral

Goldman Sachs is out with its report today on ON Semiconductor

, downgrading ONNN from Buy to Neutral. In a note to clients, Goldman Sachs writes, "We are downgrading ON Semi to Neutral from Buy as we believe ON's earnings drivers are now better understood by the market and reflected in the stock. While we believe ON's outlook remains strong, we see less upside from here given: (1) Significant upward revisions to Street estimates post 1Q given strong accretion realized from the Sanyo acquisition (Street estimates up 29% YTD, now essentially in line with GS), (2) Valuation is closer to normalized levels with the stock now trading within 5% of our 12-month price target. Since we initiated with a Buy on 9/30/09, ON is up 37% vs. the S&P up 26%. Over 12 months, ON is up 55% vs. the S&P 500 up 24%." At the time of posting, shares of ONNN were trading pre-market at $10.95, down 3.01% from Friday's close.