
ON Semiconductor (ON) Stock Forecast & Price Target
ON Semiconductor (ON) Analyst Ratings
Bulls say
ON Semiconductor's strong market position as the second-largest power chipmaker and the foremost supplier of image sensors in the automotive sector underpins a positive outlook for the company. Key financial indicators reflect this momentum, with a significant 72% increase in free cash flow year-over-year, now constituting 31% of revenue, and automotive revenue exceeding expectations by approximately 5%. Furthermore, the firm is effectively pivoting towards high-growth areas, demonstrated by its anticipated double-digit growth in Field Stop 7 IGBT revenue and a robust ramp-up in AI revenue, which is projected to reach around $250 million by 2025.
Bears say
The analysis of ON Semiconductor's financial reports reveals persistent gross margin pressure, with the guidance for the second quarter indicating a decline to approximately 37.5%, aligning with challenges from pricing actions and under absorption. The industrial segment has shown a significant decline both year-over-year and quarter-over-quarter, and despite indications of a return to growth, the overall performance fell short of consensus expectations, particularly in cash flow metrics. Additionally, operational metrics such as operating margin and gross margin have reached their lowest levels since the first quarter of 2021, further signaling a deterioration in financial stability for the company.
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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