
ON Semiconductor (ON) Stock Forecast & Price Target
ON Semiconductor (ON) Analyst Ratings
Bulls say
ON Semiconductor demonstrates a strong financial outlook supported by anticipated double-digit revenue growth for its latest-generation Field Stop 7 IGBT product by 2026, reflecting robust demand in key markets. The company reported a 72% year-over-year increase in free cash flow to 31% of revenue, with a substantial portion allocated to share repurchases, indicating strong financial health and capital management. Additionally, automotive revenue outperformed expectations by approximately 5%, driven by strong performance in the Americas, China, and Japan, alongside significant growth in AI revenue, which doubled year-over-year, underscoring the company's successful pivot towards high-value technologies in emerging applications.
Bears say
ON Semiconductor is experiencing significant gross margin pressure, with the second-quarter gross margin expected to decline to approximately 37.5%, attributed to under absorption and aggressive pricing strategies aimed at maintaining market share. Additionally, the company's financial performance indicators reflect a broader concern, as major cash flow metrics fell short of consensus expectations and the operating margin dropped to its lowest level since early 2021, suggesting persistent challenges in profitability. The decline in industrial revenue and underwhelming performance in automotive and other segments further exacerbates the negative outlook, signaling potential difficulties in achieving growth amidst ongoing headwinds in key markets.
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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