
ON Semiconductor (ON) Stock Forecast & Price Target
ON Semiconductor (ON) Analyst Ratings
Bulls say
ON Semiconductor demonstrates a robust financial outlook, evidenced by a 72% year-over-year improvement in free cash flow, which constituted 31% of revenue, with a significant portion allocated for share repurchases. The company reported Q3 revenue of $1,550.9 million, surpassing consensus estimates by approximately 2%, driven by strong performance in both automotive and industrial sectors, particularly in key markets such as the Americas, China, and Japan. Additionally, ON Semiconductor is strategically pivoting towards high-growth areas such as electric vehicles and AI, with anticipated revenue growth in its latest-generation Field Stop 7 IGBT and a doubling of AI revenue year-over-year, indicating a solid foundation for sustained expansion in the coming years.
Bears say
The analysis indicates that ON Semiconductor is facing significant gross margin pressures, with a projected gross margin of approximately 37.5% for the second quarter, reflecting a 250-basis point decline quarter-over-quarter. Furthermore, the company's industrial segment experienced a 4% decline quarter-over-quarter and a substantial 16% year-over-year drop, contributing to a shortfall in cash flow metrics and overall performance. Additionally, with a decline in operating margin and underwhelming free cash flow results, ON Semiconductor's financial outlook appears strained, raising concerns about its ability to sustain growth amid challenging market conditions.
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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