On Semi price target raised to $55 from $50 at UBS

UBS raised the firm’s price target on On Semi (ON) to $55 from $50 and keeps a Neutral rating on the shares. The firm expects On Semi to report Q3 near the middle of the guidance range with revenue of $1.515B, “steady” gross margin, and adjusted EPS of 59c, the analyst tells investors in a research note. The firm’s data suggests On is building inventory intra-quarter and then dropping prices in the final month of the quarter in both Q2 and again in Q3, highlighting the channel inventory issue for On Semi’s parts, UBS adds.