Joseph Quatrochi, an analyst from Wells Fargo, maintained the Buy rating on ON Semiconductor (ON – Research Report). The associated price target was lowered to $60.00.
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Joseph Quatrochi has given his Buy rating due to a combination of factors such as ON Semiconductor’s ongoing efforts to rationalize fixed costs, which are expected to accelerate the recovery of earnings per share (EPS) alongside a modest improvement in demand. Despite a challenging demand environment, the company is anticipated to enhance its free cash flow for 2025, driven by reduced capital expenditures and improved working capital management.
Additionally, ON Semiconductor’s commitment to further reducing non-core and price-sensitive revenue is a strategic maneuver to stabilize pricing amidst volatility. The company’s plans for organizational rightsizing and manufacturing footprint rationalization are poised to strengthen its profit and loss statement by late 2025, with operational expenditure impacts anticipated as early as the second quarter of 2025. These strategic initiatives, despite short-term hurdles, underpin the positive outlook for ON Semiconductor’s longer-term growth potential.
According to TipRanks, Quatrochi is a 5-star analyst with an average return of 17.5% and a 62.10% success rate. Quatrochi covers the Technology sector, focusing on stocks such as Synopsys, ARM Holdings PLC ADR, and ON Semiconductor.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $85.00 price target.