On Semiconductor (ON)

[JohnCM]

ON Semiconductor upgraded at Morgan Stanley after earnings strength

Aug. 03, 2021 8:13 AM ETON Semiconductor Corporation (ON)ON Semiconductor Corporation (ON)By: Brandy Betz, SA News Editor

ON Semiconductor (NASDAQ:ON) reported strong second-quarter earnings yesterday with upside guidance, prompting an upgrade at Morgan Stanley from Underweight to Equal Weight.

Analyst Joseph Moore says the company "reported the strongest results out of all of the broad based suppliers in our coverage."

Moore sees ON's portfolio optimization efforts driving continued "strong fundamental performance."

The analyst is sticking to the sidelines because the company's gross margin improvement is likely at least partially due to cyclical elements.

Morgan Stanley raises its ON price target by $10 to $42.

ON Semi shares are up 0.6% pre-market to $43.92.

Background: ON Semiconductor pops 10% after Q2 beats amid global chip shortage