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On Semiconductor price target lowered to $55 from $65 at TD Cowen

TD Cowen lowered the firm’s price target on On Semiconductor (ON) to $55 from $65 and keeps a Buy rating on the shares. The firm noted gross margins guidance was worse than feared given stability through the cycle, sending shares lower. Cowen believes the divergence from peers is an attempt to more aggressively manage inventory, but management will need to prove this over the coming quarters.

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