In a report released today, Rajvindra Gill from Needham maintained a Buy rating on ON Semi (ON), with a price target of $27. The company’s shares closed yesterday at $20.56.
Gill noted:
“On March 27 th , ON announced its decision to acquire $24.50 per share in all cash transaction. This transaction has an enterprise value of value of $936 million or ~3.1x EV/sales (’20 est.). We expect this transaction to be immediately accretive to its non-GAAP earnings per share (~$0.05) and free cash flow. ON expects annual operation synergies at a run- rate of $26 million, which it expects to achieve within the first year of close. QTNA will help ON expand into the edge, infrastructure and channel in the high-performance Wi- F market. The potential SAM opportunity is $4.3 billion by 2022, $1.2 billion of which will be incremental and $3.1 billion from QTNA’s existing business lines.”
According to TipRanks.com, Gill is a 5-star analyst with an average return of 10.0% and a 53.8% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Smart Global Holdings Inc, and Everspin Technologies Inc.
ON Semi has an analyst consensus of Moderate Buy, with a price target consensus of $25.28, a 23.0% upside from current levels. In a report released yesterday, Goldman Sachs also upgraded the stock to Buy with a $26 price target.
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The company has a one-year high of $26.38 and a one-year low of $14.55. Currently, ON Semi has an average volume of 6.96M.
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ON Semiconductor Corp. engages in the design, manufacture, and marketing of portfolio of semiconductor components. It operates through the following segments: Power Solutions Group, Analog Solutions Group, and Intelligent Sensing Group.
