ON Semiconductor initiated with an Outperform at Evercore ISI

Evercore ISI initiated coverage of ON Semiconductor with an Outperform rating and $104 price target. The firm calls ON a “Tectonic Shift play” as a key supplier into the emerging IoT market, which the firm expects to grow to tens of billions of units. The firm believes ON will remain a market leader in high-growth silicon carbide and will generate robust free cash flow while expanding its operating margins by 1,300 basis points over the next five years, the analyst tells investors.