
ON Semiconductor (ON) Stock Forecast & Price Target
ON Semiconductor (ON) Analyst Ratings
Bulls say
ON Semiconductor is experiencing a positive financial trajectory, highlighted by a strong revenue performance of $1,550.9 million in the latest quarter, which surpassed consensus estimates by approximately 2% and was driven by growth in both the automotive and industrial sectors. The company's free cash flow improved significantly, rising 72% year-over-year to 31% of total revenue, with a notable portion allocated for share repurchases, reflecting strong financial discipline and shareholder returns. Additionally, ON Semiconductor is benefiting from key design wins in electric vehicle platforms and a doubling of AI revenue year-over-year in Q3, underpinning long-term growth potential across its advanced semiconductor product portfolio.
Bears say
The outlook on ON Semiconductor's stock is negatively impacted by persistent gross margin pressure, which is anticipated to decline to approximately 37.5% in Q2 due to under absorption and pricing strategies aimed at maintaining market share, representing a 250-basis point reduction quarter-over-quarter. Furthermore, the industrial segment faced a 4% drop quarter-over-quarter and a 16% decline year-over-year, with expectations for modest recovery in growth, indicating ongoing challenges in core revenue drivers. Additionally, first-quarter financial metrics fell short of consensus, with free cash flow approximately $30 million below expectations and operating margin decreasing by 840 basis points to 18.3%, marking a significant deterioration in profitability.
This aggregate rating is based on analysts' research of ON Semiconductor and is not a guaranteed prediction by Public.com or investment advice.
ON Semiconductor (ON) Analyst Forecast & Price Prediction
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