Needham Raises ON Semiconductor Price Target to $72
Needham analyst Rajvindra Gill raised the price target on ON Semiconductor (NASDAQ: ON) to $72.00 (from $68.00) while maintaining a Buy rating.
“Onsemi posted a beat and guided NG EPS ahead of our estimate.
Our key takeaways include: 1) NG GM is set to expand through the year as the company executes on its Fab right strategy.
Utilization should improve to the low 70% range in 1Q26 and into the mid-70% range in 2Q26 and 3Q26; 2) Visibility has improved vs. 90 days ago.
1Q26 was guided in line with typical seasonality, but would have been above if not for $50MM in non-core exits.
Non-core revenue exits are expected to total ~$300MM in 2026; and, 3) ON expects to sample 30 new GaN devices spanning 40V to 1,200V in 2026.
These GaN devices will support applications in AI data centers, EVs, renewables, A&D, and security with lateral and vertical GaN revenue expected to start in 2026 and 2027, respectively.
We raise our 12-month PT to $72, based on 17.5x our CY27 NG EPS estimate of $4.10.”
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