UPDATE: Morgan Stanley Reiterates Underweight Rating, Removes PT on ON Semiconductor Corp. Following Acquisition Announcement

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, “After getting the acquired SANYO business close to break-even, ON announced a $400mn acquisition yesterday in the competitive image sensor space. Investors are clearly enthusiastic about accretive deals, although the margin profile and end market mix may be questioned here. We are Underweight ONNN due to lower growth and less operating leverage relative to peers.” ON Semiconductor Corp. closed on Monday at $8.98.