Cantor Fitzgerald Reiterates Neutral on ON Semiconductor, $110 PT

Cantor Fitzgerald analyst Matthew Prisco reiterated a Neutral rating and $110 price target on ON Semiconductor (NASDAQ: ON).

“A couple of weeks ago, this was a consensus long.

But following the SYNA acquisition announcement and lack of preannouncement (a meaningful negative given lofty expectations), we believe positions here are more mixed today.

That said, we look for messaging to support ongoing cyclical recovery, positivity around the DC power opportunity, and margin expansion in the 2H (we currently model GMs of 42% exiting the year, a number to which upside will be a key stock driver).

We recently published our CY28 stretch goal EPS for ON where we see upside to $6, and discounted back this does support continued upside for shares after the pullback.

So today, we are more positive on the setup for the name (and appreciate the company’s effort in expanding its system-level offerings), though view ON as potentially in the penalty box a bit following the acquisition announcement.”

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