
ON Semiconductor (ON) Stock Forecast & Price Target
ON Semiconductor (ON) Analyst Ratings
Bulls say
ON Semiconductor is anticipated to experience significant revenue growth, particularly with its latest-generation Field Stop 7 IGBT, projecting double-digit growth by 2026. The company reported a 72% year-over-year increase in free cash flow, which constituted 31% of its revenue, of which 66% was allocated for share repurchases, indicating strong financial health and shareholder return strategy. Additionally, ON Semiconductor's automotive revenue surpassed expectations by approximately 5%, bolstered by strong performance in key markets and ongoing design wins in electric vehicle platforms, supporting long-term growth in high-value semiconductor solutions.
Bears say
The analysis identifies several challenges contributing to a negative outlook for ON Semiconductor's stock, primarily related to its financial performance metrics. The company's gross margin is under pressure, projected to decline to approximately 37.5% in the second quarter, reflecting a significant decrease and impacting profitability due to pricing strategies and market share competition. Additionally, ON Semiconductor has reported a decline in the industrial segment and missed consensus estimates on key cash flow measures, with free cash flow falling short by about $30 million and operating margin reaching its lowest level since the first quarter of 2021, highlighting persistent operational inefficiencies and market headwinds in its core segments.
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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