In a report published Thursday, Jefferies analyst Mark Lipacis downgraded the rating on ON Semiconductor Corp. ONNN 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.
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