Stifel Lowers ON Semiconductor Price Target to $90

Stifel analyst Tore Svanberg lowered the price target on ON Semiconductor (NASDAQ: ON) to $90 (from $107) while maintaining a Hold rating.

“2Q26 revenue of $1.60bn (+6.0% q/q) was +1.2% above our $1.59bn estimate and above the guidance midpoint, driven by a broad-based recovery and accelerating AI DC demand.

Management now expects AI DC revenue to more than double in CY26E.3Q26E revenue guidance midpoint of $1.70bn (+6.0% q/q) came in +2.3% above our $1.66bn estimate, as visibility continues to improve into 2H26 and CY27.

While we believe ON is well positioned to participate in the analog upcycle, we would note that revenue growth for CY26E is still only roughly +9.3% (by our estimates), below our WSTS SIA projection for the analog industry at +11-15% and at the lower end of our coverage.

We maintain our Hold rating at this time, pending sustained GM improvement.

Lowering our 12-month TP to $90 (from $107), representing a 19.8x CY27E P/E multiple.”

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