UPDATE: Sterne Agee Initiates ON Semiconductor Corporation with Neutral, $8 PT on Macro Headwinds

Sterne Agee initiates its coverage on ON Semiconductor Corporation

with a Neutral rating and a price target of $8 a share. Sterne Agee comments, "While valuations are cheap and ONNN is executing well, it is not leveraged to any particular product cycles. We are staying on the sidelines given some of the macro slowdown. ONNN is a broad Discrete Analog supplier into multiple Consumer-industrial-automotive markets: ONNN is the ninth largest discrete analog provider worldwide and a global leader in the discrete Analog market shipping into every major market segment. For FY11, Automotive (21% of Revenue), Industrial (15%), Consumer (26%), and Computing (19%). But recent macro trends have been soft and could impact outlook, offset by lean OEM-distributor inventories." ONNN closed at $7.10 on Friday.