Susquehanna analyst Christopher Rolland reiterated a Buy rating on ON Semiconductor (ON – Research Report) yesterday and set a price target of $60.00.
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Christopher Rolland has given his Buy rating due to a combination of factors despite some short-term challenges. The company has shown promising growth in areas such as silicon carbide (SiC) and AI/DC power, which are expected to drive long-term success. The recent acquisition of Qorvo’s SiC JFET business is expected to enhance their capabilities in these sectors, and AI/DC revenue has already demonstrated significant year-over-year growth.
Despite weaker results in the automotive sector and broader market pressures, management remains committed to strategic improvements and achieving long-term targets, such as a 53% gross margin. While inventory issues and pricing pressures exist, the company is actively managing these challenges and showing resilience. This optimistic outlook for future growth, supported by new market opportunities and strategic acquisitions, underpins Rolland’s Buy rating for ON Semiconductor.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $60.00 price target.