Rating
Hold
Price target
$95
Previous
$60
Implied downside
-7%

Cantor Fitzgerald analyst Matthew Prisco raised the price target on ON Semiconductor (NASDAQ: ON) to $95.00 (from $60.00) while maintaining a Neutral rating.

“Cycle commentary was fantastic, with trends improving as the Q progressed, echoing what we’ve generally heard from peers thus far through earnings (i.e., strengthening order patterns, increased short lead-time orders, improving visibility, lead-time extensions, increasing expedites, pricing power into 2H, etc.).

As such, ON posted a solid top-line beat and raise, with mgmt. noting that the business is now at an inflection point and “on a path to recovery.”…Looking forward, there are clear positive takeaways here with the cycle turning, margins guided to expand through the year (we think exiting CY26 at ~42%), DC revs guided to double in CY26 (from >$250M in CY25), and design wins ramping through the year, adding an idiosyncratic kicker to the story.

But with overexposure to Auto where demand remains softer (>50% of revs), pressure relative to peers on business exits (reiterated at ~$300M for the year), and DC still a smaller revenue contributor (~HSD% of revs in CY26), we just see cleaner upside elsewhere today.

We reiterate our Neutral rating and raise our price target to $95 to reflect CY27 upside (equating to 20x upside CY27 EPS of $4.50-5.00).”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.

Share

Share on