IFNNY - onsemi Riding High But The Ride Doesn't Have To End Soon

• Management at onsemi has done excellent work in what are still the relatively early stages of a plan to fundamentally shift the company's margin structure to a higher level.
• Strong demand for more advanced products should accelerate the process of exiting lower-margin business, while fab exits and 300mm production have yet to contribute meaningfully.
• Strong high single-digit revenue growth can be supported by increasing demand for advanced power management and sensing in autos and across a range of industrial end-markets.
• High-single-digit long-term revenue growth, low-to-mid 20%'s long-term adjusted FCF margins, and near-term operating margins above 30% can support a near-term fair value of $75.

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