
ON Semiconductor (ON) Stock Forecast & Price Target
ON Semiconductor (ON) Analyst Ratings
Bulls say
Onsemi demonstrates a robust financial outlook supported by its commitment to return 50% of free cash flow (FCF) through share repurchases and targets FCF to sales of 25-30% by 2025. The company's strategic pivot towards higher value products in electric vehicles, autonomous vehicles, and industrial automation indicates strong potential for long-term growth, even in a challenging macro environment. Additionally, solid design wins and the realignment of its business model position Onsemi favorably for expanded operating metrics once market conditions improve.
Bears say
ON Semiconductor has experienced a significant revenue outlook miss, with the $1.4 billion midpoint falling short of expectations by 17% and EPS guidance disappointing at $0.50, which is 44% lower than anticipated. The company's gross margin is projected to decline from approximately 45% in early 2024 to around 38.5% by mid-2025, largely due to decreasing utilization rates and weak automotive demand, particularly in China, where electric vehicle registrations have seen a substantial month-over-month decline. Furthermore, management's expectation of ongoing deterioration across key segments—including a 25% quarter-over-quarter drop in automotive sales—suggests that ON Semiconductor is facing considerable challenges amid a softer demand environment and potential over-shipment issues.
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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