Analyst Christopher Danely of Citi reiterated a Hold rating on ON Semiconductor (ON – Research Report), with a price target of $52.00.
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Christopher Danely has given his Hold rating due to a combination of factors including ON Semiconductor’s recent performance and future guidance. The company reported weaker-than-expected results for the fourth quarter of 2024, with sales and earnings per share (EPS) falling below both the analyst’s and the consensus estimates. This underperformance was largely attributed to a downturn in the Industrial market, which makes up a significant portion of ON’s sales.
Further, the guidance for the first quarter of 2025 indicates continued challenges, particularly in the Auto market where sales are expected to decline significantly. This has prompted Danely to lower his estimates for ON’s revenue and EPS for the coming years, reflecting a more conservative outlook. Despite these challenges, Danely believes that the current market conditions are largely priced into the estimates and that ON is approaching a potential bottom, which supports maintaining a Neutral rating while lowering the price target.
In another report released yesterday, Rosenblatt Securities also maintained a Hold rating on the stock with a $49.00 price target.