UBS Raises ON Semiconductor Target Price to $70
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 07 2024
0mins
Should l Buy ON?
Source: Benzinga
ON Semiconductor Corp's stock rose by 5.03% as it crossed above the 5-day SMA, indicating positive momentum despite broader market declines. UBS has raised its target price for ON Semiconductor from $55 to $70, reflecting a strong outlook on the company's performance in the semiconductor sector. This upgrade comes amid a challenging market environment, where the Nasdaq-100 is down 1.66% and the S&P 500 is down 0.43%, suggesting that investor confidence in ON Semiconductor remains robust.
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Analyst Views on ON
Wall Street analysts forecast ON stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ON is 61.25 USD with a low forecast of 50.00 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
9 Buy
10 Hold
0 Sell
Moderate Buy
Current: 63.100
Low
50.00
Averages
61.25
High
80.00
Current: 63.100
Low
50.00
Averages
61.25
High
80.00
About ON
ON Semiconductor Corporation operates under the onsemi brand. It provides intelligent power and intelligent sensing solutions. Its segments include the Power Solutions Group (PSG), the Analog & Mixed-Signal Group (AMG), and the Intelligent Sensing Group (ISG). PSG offers an array of discrete, module and integrated semiconductor products that perform multiple application functions, including power switching, signal conditioning, and circuit protection. AMG designs and develops analog, mixed-signal, Power Management ICs, Sensor Interface devices, Power Conversion, Signal Chain, and Voltage Regulation devices for a broad base of end-users in the automotive, industrial, computing and mobile end-markets. ISG designs and develops CMOS image sensors, image signal processors, single photon detectors, including SiPM, SPAD arrays and short-wavelength infrared products, as well as actuator drivers for autofocus and image stabilization for a broad base of end-users in the different 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.
ON Semiconductor Set to Release Q4 Earnings on February 9th
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- Historical Performance: Over the past two years, ON has beaten EPS estimates 75% of the time and revenue estimates 88% of the time, indicating a strong track record of performance amidst market fluctuations.
- Estimate Revisions: In the last three months, EPS estimates have seen 15 upward revisions and 8 downward revisions, while revenue estimates have experienced 20 upward revisions and 8 downward revisions, showcasing market uncertainty regarding future performance.
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- Earnings Announcement: ON Semiconductor is set to announce its Q4 2023 earnings on February 9th after market close, with consensus EPS estimate at $0.62, reflecting a 34.7% year-over-year decline, and revenue estimate at $1.54 billion, down 11% year-over-year.
- Historical Performance: Over the past two years, ON has beaten EPS estimates 75% of the time and revenue estimates 88% of the time, indicating a strong track record of performance amidst market fluctuations.
- Estimate Revisions: In the last three months, EPS estimates have seen 15 upward revisions and 8 downward revisions, while revenue estimates have experienced 20 upward revisions and 8 downward revisions, showcasing market uncertainty regarding future performance.
- Increased Market Attention: With stronger demand anticipated for analog chips, BNP Paribas has upgraded ON Semiconductor and its peers, reflecting growing confidence in a cyclical recovery within the semiconductor industry.
See More
U.S. Stock Futures Decline Amid Cautious Market Sentiment
- Market Sentiment Dips: Following a strong rebound on Friday, U.S. stock futures declined on Monday, reflecting cautious market sentiment amid concerns over upcoming economic data, particularly regarding inflation and labor market changes.
- Japanese Market Surge: The Nikkei 225 index broke the 57,000-point barrier for the first time, driven by Prime Minister Sanae Takaichi's landslide election victory and a high-profile endorsement from Trump, indicating a robust recovery in Japan that may attract more international investors.
- Stable Treasury Yields: The 10-year Treasury bond yield stood at 4.22%, while the two-year yield was at 3.50%, suggesting market expectations for the Federal Reserve's future interest rate policy are stabilizing, with an 84.2% likelihood of rates remaining unchanged in March.
- Stock Dynamics: FedEx shares rose 0.47% after announcing plans to acquire InPost for €7.8 billion, showcasing a proactive business expansion strategy, while ON Semiconductor fell 1.38% as analysts expect quarterly earnings to miss expectations.
See More
U.S. Stock Futures Rise, Focus on Aecom and ON Semiconductor
- Aecom Earnings Forecast: Aecom (NYSE:ACM) is projected to report quarterly earnings of $1.17 per share on revenue of $3.61 billion, indicating stable growth in the infrastructure sector that may enhance investor confidence.
- Stock Performance: Aecom shares rose 2.4% to close at $101.03 on Friday, reflecting optimistic market sentiment ahead of its earnings report, which could attract more investor attention.
- ON Semiconductor Earnings Outlook: Analysts expect ON Semiconductor Corp. (NASDAQ:ON) to post quarterly earnings of 62 cents per share with revenue of $1.54 billion, suggesting ongoing demand and growth potential in the semiconductor market.
- Stock Movement: ON Semiconductor shares gained 0.1% in after-hours trading, closing at $65.23, indicating market anticipation for its earnings report, which may influence future investment decisions.
See More
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
Next Week's Market Focus: Super Bowl and Earnings Reports
- Super Bowl Event: This Sunday, the Patriots will face the Seahawks in Super Bowl LX, expected to attract a large audience and boost related advertising revenues, further solidifying the significance of sporting events in the market.
- Earnings Season Arrives: Companies like Coinbase, Ford, McDonald's, and Moderna will report earnings next week, with analysts focusing on McDonald's same-store sales, which are expected to rise due to promotional activities, reflecting consumer demand for value products.
- Economic Data Release: The delayed January jobs report will be released on Wednesday, with economists forecasting the addition of 70,000 jobs in the U.S., providing the market with the latest dynamics on the labor market.
- Inflation Indicator Focus: The Consumer Price Index (CPI) will be released on Friday, with the market closely monitoring this key indicator's impact on future economic outlook and Federal Reserve policy, potentially influencing interest rate decisions.
See More
U.S. Jobs and Inflation Data Set for Release
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
