- 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.
For further details see:
ON Semiconductor: Powering Up The Auto And Industrial World