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On has ‘modest room’ to up Allegro bid, says Roth MKM

On has ‘modest room’ to up Allegro bid, says Roth MKM

Roth MKM keeps a Buy rating on On Semiconductor (ON) with a $60 price target after the company announced a public cash bid to acquire Allegro MicroSystems (ALGM) for $35.10 per share. The firm believes Allegro has a similar financial profitability profile to On and adds a complementary set of automotive sensing products to the company’s “broad” portfolio offering. Roth estimates On has “modest room” to further increase its bid, if needed.

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