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ON Semiconductor’s Strategic Restructuring and Cost Savings Drive Buy Rating

ON Semiconductor’s Strategic Restructuring and Cost Savings Drive Buy Rating

ON Semiconductor (ONResearch Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Joseph Quatrochi from Wells Fargo maintained a Buy rating on the stock and has a $60.00 price target.

Joseph Quatrochi has given his Buy rating due to a combination of factors including ON Semiconductor’s strategic restructuring efforts aimed at achieving significant cost savings. The company has announced a global restructuring plan that is expected to deliver annual savings of $105-115 million, which is anticipated to positively impact the company’s earnings per share by 2026.
Additionally, ON Semiconductor is focusing on reducing expenditures on non-essential projects while maintaining its investment in research and development. This strategic move includes a reduction in the global workforce, which is projected to streamline operations and enhance profitability. The company’s commitment to exiting non-core and price-sensitive revenue streams further supports the potential for improved financial performance, making the stock an attractive investment opportunity.

In another report released on February 12, Benchmark Co. also maintained a Buy rating on the stock with a $60.00 price target.

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