Raymond James analyst Melissa Fairbanks downgraded ON Semiconductor to Market Perform from Outperform without a price target. The downgrade is not a call on business conditions or the company’s long term growth strategy, with ON Semiconductor tracking steadily toward the 2025 target model of $9B in revenue and sustainable gross margins in the 48%-50% range, but is based on valuation, the analyst tells investors in a research note. With near-term headwinds related to overhead absorption and strategic business exits, combined with a valuation above historical levels, the firm feels there are opportunities elsewhere in analog semis.
Published first on TheFly
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