Evercore ISI Raises ON Semiconductor Price Target to $121
Evercore ISI analyst Mark Lipacis raised the price target on ON Semiconductor (NASDAQ: ON) to $121.00 (from $80.00) while maintaining a Outperform rating.
“We Remain Buyers of ON…after it posted MarQ EPS 5% above Street, 2Q EPS outlook of 7% above and 2Q revenue outlook 350bps above Street. GM of 38.5% was consistent with our preview and mgmt described extending lead times, increased expedite requests and power products going on allocation as highlighted in our channel checks.
We remain buyers given improving fundamentals driven by 1) Management’s guidance on AI DC revs doubling YY in 2026 to >$500M w/ 1Q growing +30% QQ 2) 1Q26 capex coming in at the lowest in 5+ years 3) Auto returning to growth (+5% YY) after seven sequential quarters of decline 4) GM expanding for the third consecutive quarter.
5) FCF/Shr increasing from $3.4 in 2025 to $9.2 in 2028. We raise our PT to $121 (22x our 2028 EPS discounted back 2 yr) and reiterate our O/P rating.”
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