Barclays Sets $75 Target and Equal Weight on ON Semiconductor
Barclays initiated coverage of ON Semiconductor with an Equal Weight rating and a $75 price target, citing cautious optimism on industrial recovery while flagging high China and auto exposure as overhangs. Deutsche Bank raised its price target to $75 from $65 and Needham to $72 after Q4 non-GAAP EPS of $0.64 topped forecasts by $0.02, with fab utilization seen rising to the low-70% range in Q1 and mid-70% thereafter.
1. Barclays Initiates Coverage
On February 12, Barclays initiated coverage of ON Semiconductor with an Equal Weight rating and a $75 price target, citing cautious optimism as PMIs turn higher while flagging China and auto end-market exposure as key overhangs.
2. Price Target Increases by Deutsche Bank and Needham
Deutsche Bank raised its ON Semiconductor price target from $65 to $75 while maintaining a Buy rating, and Needham lifted its target from $68 to $72, both referencing gradual performance improvement and expanding gross margins as execution of the Fab right strategy progresses.
3. Q4 Results and Operational Outlook
ON Semiconductor reported Q4 non-GAAP EPS of $0.64 versus consensus $0.62, driven by disciplined execution and stabilization across key markets; management expects fab utilization to climb from low-70% in Q1 to mid-70% in Q2 and Q3, supported by investments in intelligent power and sensing technologies and a focus on automotive, industrial and AI data center power solutions.