BofA Upgrades ON Semiconductor to Buy, Boosting Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 05 2024
0mins
Should l Buy ON?
ON Semiconductor Corp's stock surged by 6.49%, reaching a 52-week high, following a rating upgrade from BofA from Neutral to Buy, with a new price target of $85.
The upgrade reflects BofA's confidence in ON Semiconductor's strong free cash flow yield of approximately 6% and a significant $6 billion stock buyback plan over the next three years, despite challenges in the auto and EV markets. Analysts noted that the company's focus on cost-cutting and free cash flow generation positions it well for recovery, especially with an upcoming analyst day that will highlight its AI capabilities.
This upgrade not only boosts investor confidence but also positions ON Semiconductor favorably in a competitive market, potentially attracting more capital inflows as the company demonstrates resilience amid sector challenges.
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Analyst Views on ON
Wall Street analysts forecast ON stock price to fall
19 Analyst Rating
9 Buy
10 Hold
0 Sell
Moderate Buy
Current: 72.430
Low
50.00
Averages
61.25
High
80.00
Current: 72.430
Low
50.00
Averages
61.25
High
80.00
About ON
ON Semiconductor Corporation is engaged in providing intelligent power and intelligent sensing solutions. The Company’s intelligent power technologies enable the electrification of drivetrain in the automotive industry to allow for lighter and longer-range electric vehicles. Its segments include Power Solutions Group (PSG), the Analog and Mixed-Signal Group (AMG) and the Intelligent Sensing Group (ISG). PSG segment provides a portfolio of discrete, module, and integrated semiconductor devices designed to enable conversion across artificial intelligence (AI) data centers, energy infrastructure, automotive and industrial. AMG segment designs and develops a range of analog and mixed-signal solutions including power‑management, sensor‑interface, connectivity, and products that serve automotive, industrial automation, AI data center, computing, and mobile end markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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