On Semiconductor price target raised to $75 from $70 at Baird

Baird analyst Tristan Gerra raised the firm’s price target on On Semiconductor (ON) to $75 from $70 and keeps a Neutral rating on the shares. The firm said not surprisingly, capex is coming down next year, a typical move before which a cycle does not bottom, reflecting both excess capacity and weak demand. Baird’s concerns remain centered around the pace of recovery ahead and high customer inventories impacting utilization rates.