ON Semiconductor Loses PBCM Backing as EPS Forecast Slashed to $3
PBCM sold its two-year ON position, forecasting $3 EPS over three years—below its prior $5–$7.50 outlook—and cut its price target to $50 citing EV demand weakness. ON’s RF-based VRU sensing market was $2 billion in 2024 and should hit $3 billion by 2026 on stricter safety rules and ADAS rollouts.
1. PBCM Exits ON and Lowers EPS Forecast
Pelican Bay Capital Management exited its two-year stake in ON Semiconductor after projecting normalized earnings of $3 per share over the next three years, down from its earlier $5–$7.50 outlook. The firm cited persistently weak electric vehicle demand and US–China trade tensions in cutting its price target to $50, matching the current share price.
2. ON’s Role in a Growing RF-Based VRU Market
ON is among key suppliers of radio-frequency-based Vulnerable Road User sensing platforms, which enable real-time pedestrian and cyclist detection under night and adverse weather conditions. The global RF-based VRU sensing market was valued at $2 billion in 2024 and is forecast to reach about $3 billion by 2026, driven by stricter safety regulations and ADAS adoption.