The consensus price target for ON Semiconductor Corporation (NASDAQ:ON) has decreased from $85.1 to $60 over the past year, indicating a more cautious outlook from analysts.
ON Semiconductor’s strategic focus on silicon carbide (SiC) technology and vertical integration positions it well for long-term growth despite current market challenges.
Analyst Harsh Kumar from Piper Sandler sets a price target of $75, reflecting confidence in ON’s future performance amidst short-term volatility.
ON Semiconductor Corporation (NASDAQ:ON) is a key player in the semiconductor industry, providing intelligent sensing and power solutions, especially in the automotive sector. The company supports vehicle electrification and sustainable energy solutions. Despite its strong market position, the consensus price target for ON has decreased significantly over the past year, reflecting a more cautious outlook from analysts.
A year ago, analysts set an average price target of $85.1 for ON’s stock. However, this target has steadily declined, reaching $77.5 last quarter and further dropping to $60 in the past month. This downward trend suggests growing caution among analysts regarding ON’s stock performance, possibly due to market conditions, company performance, or industry trends.
ON Semiconductor is currently facing market challenges, but its long-term potential remains promising. The company has made strategic moves in silicon carbide (SiC) and vertical integration, such as acquiring Qorvo’s SiC JFET business and achieving self-sufficiency in SiC production. These initiatives provide a significant advantage amid supply chain uncertainties.
Despite short-term volatility and inconsistent earnings, ON’s focus on SiC technology and partnerships, like with Volkswagen, indicates strong growth potential in the electric vehicle and industrial markets. Analyst Harsh Kumar from Piper Sandler has set a price target of $75, showing confidence in ON’s future performance despite the current challenges.
Investors should consider these changes in analyst sentiment alongside other factors, such as recent company news, earnings reports, and broader market conditions, when evaluating their investment decisions related to ON Semiconductor. As the company approaches its fourth-quarter earnings report, expectations of a decline in earnings may further influence investor sentiment.
