On Semiconductor price target lowered to $90 from $100 at KeyBanc

KeyBanc analyst John Vinh lowered the firm’s price target on On Semiconductor to $90 from $100 and keeps an Overweight rating on the shares. The firm notes ON posted solid Q1 results, which were slightly above expectations, and guided Q2 lower as auto and industrial end markets correct. While not calling Q2 the bottom, ON noted that it is seeing signs of stabilization in the traditional segment of its industrial business, and despite the lowered outlook for auto and SiC, indicated that it still sees the SiC TAM growing this year and reiterated expectations to grow 2-times based on design wins and share gains. KeyBanc is encouraged with these better than feared results.