William Blair analyst Jed Dorsheimer has maintained their neutral stance on ON stock, giving a Hold rating yesterday.
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Jed Dorsheimer has given his Hold rating due to a combination of factors impacting ON Semiconductor. The company is experiencing pressure on its margins, which remain under strain despite some positive developments in the market. While there have been notable wins in the SiC sector, particularly in data centers and the Chinese EV market, these successes have not translated into improved margins, which are still below the corporate average. This indicates that pricing pressure and competition are significant concerns.
Furthermore, the valuation of ON Semiconductor is in line with its peers, such as STMicro and Infineon, trading at 17 times the 2026 EPS estimate. Although there are signs of improved execution, Dorsheimer remains cautious and is looking for clear indications of a gross margin bottom before considering a more optimistic outlook. The current market conditions, including competitive pressures in China and the need for pricing concessions, suggest that investors should remain cautious until more favorable data points emerge.
According to TipRanks, Dorsheimer is a 5-star analyst with an average return of 29.7% and a 52.79% success rate. Dorsheimer covers the Technology sector, focusing on stocks such as Aehr Test Systems, Axcelis Technologies, and ON Semiconductor.
In another report released yesterday, B.Riley Financial also maintained a Hold rating on the stock with a $58.00 price target.