UPDATE: Morgan Stanley Reiterates On ON Semiconductor On Shift In Capital Allocation

In a report published Tuesday, Morgan Stanley analyst Craig Hettenbach reiterated an Underweight rating on

, but removed the $8.00 price target. In the report, Morgan Stanley noted, “Given ON's mixed track record in M&A, including the struggles with SANYO, its new capital allocation stance toward buybacks is likely to resonate positively with investors. This should help close some of the underperfomance gap in the stock, although we remain Underweight on a relative basis.” ON Semiconductor closed on Monday at $9.54.