UPDATE: Jefferies Downgrades Semiconductor Corp. to Hold, Lowers PT in Late Innings of Cycle

In a report published Thursday, Jefferies analyst Mark Lipacis downgraded the rating on

from Buy to Hold, and lowered the price target from $10.00 to $8.50. In the report, Jefferies noted, “We believe that semis have entered the late innings of the cycle, and move to a Hold on ONNN. While we maintain our EPS estimates, and believe that there is an upward bias to estimates, we think upward revisions will be met with P/E compression. We still believe gross margins will expand and that its auto exposure provides visibility; we just think investors will prefer higher gross margin stocks in the late innings of the cycle.” ON Semiconductor Corp. closed on Wednesday at $8.16.