ON Semiconductor, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Joshua Buchalter from TD Cowen maintained a Buy rating on the stock and has a $55.00 price target.
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Joshua Buchalter has given his Buy rating due to a combination of factors influencing ON Semiconductor’s stock. Despite some company-specific challenges, such as anticipated business exits in 2026 and stagnant gross margins, the stabilization in demand and the company’s strategy to buy back shares at 100% of free cash flow are seen as positive indicators.
The disclosure of non-repeat revenues and a modest expansion in certain business areas are viewed as hurdles, yet the potential for earnings per share growth remains if the company successfully navigates these issues. Additionally, while the automotive sector is performing in line with expectations, the industrial segment shows promise in medical and aerospace applications. The cautious outlook and increased distributor inventories suggest weaker growth compared to peers, but there is still potential for upside if operational improvements are realized.
In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $68.00 price target.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ON in relation to earlier this year.