UBS Reiterates Neutral on ON Semiconductor, $95 PT
UBS analyst Timothy Arcuri reiterated a Neutral rating and $95.00 price target on ON Semiconductor (NASDAQ: ON).
“ON announced the acquisition of Synaptics (SYNA) in what we view to be a strategic pairing of ON’s power/sensing franchise with Synaptics’ edge-AI processors and WiFi/BT/GPS connectivity, creating a combined entity likely chasing Physical AI content opportunities.
In doing so, the combined entity now targets a $243B TAM by 2030, inclusive of a ~$100B AI TAM.
As for the deal terms, ON is offering 1.35 shares for each SYNA share – representing ~19% premium – and expects ~$200MM in synergies (primarily from SG&A) within 18 months after close.
Overall, the deal is expected to close in mid-2027, while being non-GAAP EPS accretive within 18 months of closure.
Separately, ON reiterated its guidance for CQ2, somewhat surprising given the strength we are seeing across the broader analog space.”
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