
ON Semiconductor (ON) Stock Forecast & Price Target
ON Semiconductor (ON) Analyst Ratings
Bulls say
ON Semiconductor has demonstrated a significant improvement in free cash flow, rising 72% year-over-year to represent 31% of revenue, with a substantial portion allocated to share repurchases. The company is experiencing solid progress in design wins, particularly within the electric vehicle sector, which supports long-term growth across its portfolio of silicon carbide and silicon-based products. Additionally, ON Semiconductor's focus on higher value products and sustainable expense management underscores its capacity for enhanced long-term operating metrics, suggesting a potential for an above-historic valuation multiple as market conditions improve.
Bears say
ON Semiconductor is experiencing significant gross margin pressure, with a projected gross margin of approximately 37.5% for the second quarter, which reflects a 250-basis point decline quarter-over-quarter attributed to under absorption and pricing strategies. Furthermore, the company's industrial segment reported a 4% decline quarter-over-quarter and a noteworthy 16% decrease year-over-year, raising concerns about sustained demand in this critical market. Additionally, while some sequential growth is anticipated in industrial and other segments, the automotive sector is forecasted to decline by mid- to upper-single digits, indicating potential weakness in a key revenue driver.
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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