Morgan Stanley downgraded On Semiconductor to Underweight from Equal Weight with a price target of $65, down from $70. The firm continues to see analog and MCU shipments bottoming out in Q2, but with multiples expanding, estimate revisions are likely to drive returns from here and the firm is taking a more selective approach in semiconductors. The firm thinks On Semi faces top-line headwinds across auto semi, SiC, and image sensors, tempering its view on margins, the analyst tells investors.
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