Needham Lowers ON Semiconductor Price Target to $116
Needham analyst N.
Quinn Bolton lowered the price target on ON Semiconductor (NASDAQ: ON) to $116 (from $130) while maintaining a Buy rating.
“Onsemi posted a beat and raise driven by strength in its AI DC business.
Our key takeaways include: 1) Demand signals continue to improve, lead times are extending, B:B continues to strengthen, and visibility is extending into CY27/28; 2) A second round of price increases is being implemented to offset rising input costs, and should be a tailwind over the next several quarters.
Management does not expect pricing to decline in CY27; 3) NG GM is expected to increase Q/Q throughout 2026, driven by better utilization and improving demand.
Utilization increased to 83% in the quarter, up from 77% in 1Q26; and, 4) AI DC revenue is now expected to more than double Y/Y in CY26 (vs. prior expectation to double).
We reduce our 12-month PT to $116, based on 20x our new CY28 NG EPS estimate of $5.80 to reflect recent multiple compression in the sector.”
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