Mizuho analyst Vijay Rakesh keeps Outperform ratings on both Allegro MicroSystems (ALGM) and On Semiconductor (ON) after Bloomberg reported On is considering a takeover of the company. A deal could create 10% cost synergies, with typical semiconductor takeout premiums at 30%-40% premiums over prior 52-weeks in the last five years, the analyst tells investors in a research note. Mizuho sees the potential deal driving synergies and expanding On’s “strong” portfolio by adding Allegro’s leading magnetic sensor portfolio.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on ALGM:
- M&A News: Allegro (ALGM) Reportedly Sees Takeover Interest from Larger Rival On Semiconductor
- Allegro draws takeover interest from ON Semiconductor, Bloomberg says
- Strategic Leadership Transition at Allegro MicroSystems Drives Buy Rating
- Allegro MicroSystems appoints Mike Doogue as CEO
- Allegro MicroSystems Names Michael C. Doogue as CEO
Looking for a trading platform? Check out TipRanks' Best Online Brokers guide, and find the ideal broker for your trades.
Report an Issue