Stifel has revised its price target for On Semiconductor (ON, Financial), reducing it from $52 to $42 while maintaining a Hold rating on the stock. This adjustment reflects concerns surrounding the broader implications of tariffs that could impact the semiconductor industry.
The firm anticipates that the Analog, Connectivity, and Processors sectors will report results for the March quarter in line with expectations. However, they foresee a more subdued outlook for the June quarter. The uncertainties around the scope, duration, and intensity of tariffs contribute to this cautious stance.
Moreover, there is growing apprehension about the semiconductor sector entering a cyclical downturn. Stifel's analyst suggests that the chances of a downturn have notably increased, potentially affecting the industry as a whole in the coming periods.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for ON Semiconductor Corp (ON, Financial) is $56.28 with a high estimate of $85.00 and a low estimate of $38.00. The average target implies an upside of 64.34% from the current price of $34.25. More detailed estimate data can be found on the ON Semiconductor Corp (ON) Forecast page.
Based on the consensus recommendation from 32 brokerage firms, ON Semiconductor Corp's (ON, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for ON Semiconductor Corp (ON, Financial) in one year is $57.91, suggesting a upside of 69.08% from the current price of $34.25. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the ON Semiconductor Corp (ON) Summary page.
