Cantor Fitzgerald Reiterates Neutral on ON Semiconductor, $60 Price Target

Cantor Fitzgerald analyst Matthew Prisco reiterated a Neutral rating and $60.00 price target on ON Semiconductor (NASDAQ: ON).

“While the combined revenues in the results/guide are coming in below expectations ($3.015B vs cons $3.070B), the makeup is a bit more interesting with Auto and Industrial both besting expectations, and the company’s “Other” biz falling well short – reflecting non-core business exits (~$90M between the quarters) and consumer weakness.

Bigger picture cycle commentary was positive from mgmt., with “clear signs of improvement” across Auto, Industrial, and AI Infra, improving order trends, B2B trending better, greater customer expedites, reduced turns requirements in the guide, extending lead times, and healthy inventory levels across core markets.

And mgmt. is reiterating its long-term target vision with continued progress in the company’s strategic refocusing.

GMs are also coming in slightly ahead of expectations as the company’s fab-right strategies play out, with expected expansion through CY26 with rising utilization rates, positive mix, and continued fab-right benefits (we think exiting the year at 40.5%).

But despite all this goodness, ON will continue to see relative growth pressure in CY26 as business exits continue through the year (~$300M in total reiterated; ~$50M in 1Q, ~$100M in 2Q, ~100M+ in 3Q, implied less than $50M in 4Q) and the company’s outsized auto exposure is likely a limiting factor.

While our numbers move slightly lower for CY26, we continue to view EPS of $4.00 as a reasonable bar into CY27. As such, we maintain our $60 price target (15x CY27 EPS) and Neutral rating.”

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