
ON Semiconductor (ON) Stock Forecast & Price Target
ON Semiconductor (ON) Analyst Ratings
Bulls say
Onsemi is positioned for significant growth, with expectations of double-digit revenue growth for its latest-generation Field Stop 7 IGBT (FS7IGBT) into 2026 and a substantial ramp in AI revenue projected to reach approximately $250 million by 2025. The company's automotive revenue exceeded expectations by around 5%, driven by strong performance across key regions, which, combined with a 72% increase in free cash flow year-over-year to 31% of revenue, underscores its robust financial health. Additionally, Onsemi's hybrid manufacturing strategy and design wins in electric vehicle platforms indicate solid long-term growth prospects, supported by a favorable shift towards higher-value products and improved operational metrics.
Bears say
The analysis indicates a negative outlook for ON Semiconductor's stock driven by significant gross margin pressure, with the second quarter gross margin projected at approximately 37.5%, marking a 250 basis points decline quarter-over-quarter primarily due to under absorption and pricing actions. Additionally, the automotive segment is anticipated to experience a decrease of mid- to upper-single digits on a quarter-over-quarter basis, coupled with overall underperformance in major cash flow metrics, including free cash flow falling about $30 million short of expectations. The operating margin has also seen a substantial decline, dropping 840 basis points to 18.3%, further reflecting underlying operational challenges amidst attempts to pivot to emerging applications.
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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