
ON Semiconductor (ON) Stock Forecast & Price Target
ON Semiconductor (ON) Analyst Ratings
Bulls say
ON Semiconductor demonstrates a robust financial outlook supported by several key performance indicators. The company's automotive revenue exceeded expectations, increasing approximately 5%, while total revenue reached $1,550.9 million, surpassing consensus estimates by about 2%. Additionally, ON Semiconductor reported a significant year-over-year free cash flow improvement of 72%, constituting 31% of revenue, with a substantial portion allocated for share repurchases, reflecting strong operational efficiency and strategic capital management aligned with growth initiatives in emerging technology sectors.
Bears say
The negative outlook on ON Semiconductor's stock is driven by persistent gross margin pressure, with a second-quarter guidance of approximately 37.5%, reflecting a significant quarter-over-quarter decline of 250 basis points due to under absorption and aggressive pricing measures. The company's performance in key sectors has also been disappointing, evidenced by a 4% quarter-over-quarter decline in the industrial segment and overall cash flow metrics that fell short of consensus expectations, including a free cash flow that was approximately $30 million below projections. Additionally, operating margins deteriorated by 840 basis points to 18.3%, marking the lowest level since the first quarter of 2021, which raises concerns about the company's financial stability and growth prospects amid a competitive landscape.
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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