FTXL - ON Semiconductor: Powering Up The Auto And Industrial World

• We rate ON Semiconductor as a strong buy due to its solid and growing position in the automotive and industrial power IC markets.
• We expect growth in power IC and the automotive markets to easily outpace growth in the analog market over the next 2-3 years.
• We believe ON's bottom line growth will outpace its top line growth as it prunes its lower-margin products and focuses on higher margin, higher ASP products.
• While ON does have some risk of double ordering from its customers, we believe the company remains well-positioned to outperform its peer group in the next few quarters.

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