UPDATE: Jefferies Raises Target to $11 on ON Semiconductor

Jefferies reiterates its Buy rating on ON Semiconductor

and raises its price target by $1.50 to $11 as the company expands margins. Jefferies says, "4Q11 revs beat consensus by $8m and Non-GAAP EPS by $0.06 driven by better gross margins and opex. MarQ revenue guide was 2.4% below consensus estimates. Order trends are improving and management believes 1Q is the bottom. We model gross margins to expand by 450 bps between 1Q and 4Q12, and view our estimates as being conservative." ONNN closed at $9.12 a share on Wednesday.