Shares of the chipmaker were gaining 5.1% to $10.79 in early trading.
The analyst firm raised its 2015 EPS estimates for the company to $1.04 a share from 91 cents a share. Credit Suisse said it expects ON Semiconductor to report earnings of $1.27 a share for 2016.
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Credit Suisse analysts highlighted ON Semiconductor's positive fourth quarter results and first quarter guidance as reasons for the increased price target. "Our Outperform rating on ONNN is based on: (1) a transition from acquisition growth to cash return, (2) self-help margin story, (3) optionality around rev growth and (4) compelling valuation," the analysts wrote.
Separately, TheStreet Ratings team rates ON SEMICONDUCTOR CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ON SEMICONDUCTOR CORP (ONNN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: ONNN Ratings Report
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