ON Semiconductor (ON – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Vivek Arya from Bank of America Securities maintained a Buy rating on the stock and has a $55.00 price target.
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Vivek Arya has given his Buy rating due to a combination of factors that suggest a positive outlook for ON Semiconductor. The company’s management has expressed confidence in a cyclical recovery, particularly in the automotive sector, which constitutes a significant portion of their sales. They anticipate a rebound in both the industrial and automotive markets in the second half of the year, with a notable contribution from the electric vehicle segment in China.
ON Semiconductor is also expected to benefit from improved utilization rates, which could enhance gross margins. The company’s strategic moves to streamline its manufacturing footprint and its strong position in the SiC and ADAS markets further support the positive rating. Additionally, ON’s ability to manage costs effectively while gaining market share in key areas positions it well for future growth. These factors, combined with a solid balance sheet, underpin Arya’s Buy rating and the price objective of $55.