WOLF - ON Semiconductor rises as Wells Fargo upgrades sees 25% upside

On Semiconductor (NASDAQ:ON) shares rose early on Thursday after investment firm Wells Fargo upgraded the stock, noting it has a significant opportunity in automotive. Analyst Gary Mobley raised the rating on On (ON) to overweight from equal weight and boosted the per-share price target to $65, implying 25% upside from current levels. Mobley added that there is "opportunity" for On Semiconductor (ON), as well as Wolfspeed (WOLF) to make their way into Tesla (TSLA) and other electric vehicles and become "top suppliers of [silicon carbide] power devices to the EV market." "While ON's automotive exposure is a key part of our investment thesis, we also think management is still in the early innings of transforming the company into a 'fab-liter' semiconductor company w/a structurally different margin & cyclical profile moving forward," Mobley wrote in a note to clients. On Semiconductor (ON) shares rose nearly 1.5% to $52.50 in premarket trading on Thursday.

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ON Semiconductor rises as Wells Fargo upgrades, sees 25% upside