ON Semi's (NASDAQ:ONNN) PT, EPS Estimate Raised by Needham

Citing ON Semi's (NASDAQ:ONNN) acquisition of Sanyo Semiconductor, in what is considered a good deal by Needham, they boosted ON Semi's price target and EPS estimate.

Needham says, "We have adjusted our earnings estimates to reflect the recently completed Sanyo Semiconductor acquisition, first announced in July 2010. Though we left our 2011 EPS unchanged at $1.05, we raised our 2012 EPS from $1.15 to $1.35. ONNN paid $144M in cash, assumed $129M in liabilities and borrowed $378M under a seven year loan agreement with Sanyo (N/R). Net of the $123M in cash on Sanyo Semi’s balance sheet, ONNN paid roughly $540M for approximately $1.2B in revenue. These terms compare favorably to ONNN’s original terms of $129M in cash, $302M in liabilities, and 35M shares of stock at $237M or about 8% dilution."

Needham & Company reiterates a "Buy" rating on ON Semi (ONNN), which closed Wednesday at $11.22, down $0.38, or 3.28 percent. Needham raised their price target on them from $11 to $13.