
ON Semiconductor (ON) Stock Forecast & Price Target
ON Semiconductor (ON) Analyst Ratings
Bulls say
Onsemi's financial outlook is bolstered by anticipated revenue growth in its latest-generation Field Stop 7 IGBT, projecting double-digit increases by 2026. The company reported a 72% year-over-year improvement in free cash flow, reaching 31% of revenue, with a substantial portion allocated to share repurchases, while automotive revenue exceeded expectations by about 5%. Additionally, Onsemi's consistent design wins in electric vehicle platforms and robust growth in AI revenue, which doubled year-over-year, reinforce the company's strategic transition towards high-value products in emerging markets.
Bears say
The outlook for ON Semiconductor appears negative due to persistent gross margin pressure, with the second quarter gross margin guided to approximately 37.5%, reflecting a 250-basis point decline quarter-over-quarter primarily driven by under-absorption and pricing actions. The company experienced a year-over-year decline in its industrial segment by 16%, and cash flow metrics fell short of consensus expectations, with free cash flow approximately $30 million below estimates. Furthermore, operational metrics deteriorated significantly, as operating margins dropped to their lowest level since the first quarter of 2021, indicating challenges in maintaining profitability within its evolving market strategy.
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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