Update (4:30 p.m. EST): Updated with closing price, day high and low prices, price change and volume information.
NEW YORK (TheStreet) -- ON Semiconductor Corp. (ONNN) climbed 1.79% to $8.80, up 16 cents from its previous close of $8.64, at the close of the trading day Tuesday after Credit Suisse upgraded the stock to outperform from neutral thanks to its relative valuation and the progress it has made toward achieving gross margin goals.
The stock had a volume of 13,933,403, more than double its average of 6,122,430. It hit a high of $8.97 and a low of $8.76 for the day.
Credit Suisse raised its target price of the Phoenix-based company to $12 from $8. The firm upgraded ON Semiconductor based on the following three factors:
"1. After 11 quarters, the Sanyo acquisition is no longer a headwind to profitability and is likely able to drive $0.05-0.07 cents of accretion to 2014 even on down y/y revenue
2. Management has little to no appetite for large acquisitions allowing them to focus on driving the operating model to target (41% GM versus C4QE GM of 34.3%) and to prioritize cash flow to buy back stock ($30.2m in C3Q13 versus $75.3m TTM and authorization of $202.4m)
3. Potential market share gains in power management in PCs from both ISIL and TXN. Our analysis suggests that ONNN has EPS potential of $1.00 at target GM and $0.10 more EPS potential at peak GM than FCS (UP), despite trading at 12.0 times FTM EPS versus 17.9x for FCS and have significantly less exposure to handsets (~10% versus 25% for FCS)."
Volume on Tuesday morning was 5 million shares; average daily volume is 6.1 million shares.