Analyst Joshua Buchalter of TD Cowen maintained a Buy rating on ON Semiconductor (ON – Research Report), with a price target of $55.00.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Joshua Buchalter’s rating is based on a combination of factors including ON Semiconductor’s recent strategic moves and market positioning. Despite the disappointing financial performance and guidance, which saw a significant decline in revenue and gross margins, Buchalter views ON Semiconductor’s aggressive inventory management as a positive step. This divergence from peers is seen as an effort to better control inventory levels, which may lead to improved operational efficiency in the long term.
Furthermore, the company has announced cost-cutting measures and plans to rationalize its manufacturing footprint through 2025, indicating strategic adjustments aimed at addressing current challenges. Although the path to recovery appears uncertain, the current valuation, combined with the prospect of achieving a more stable earnings run-rate, provides a supportive case for the stock. Buchalter believes that, despite the near-term hurdles, there is potential for upside, justifying the Buy rating.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $60.00 price target.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ON in relation to earlier this year.