Rosenblatt Securities increased ON Semiconductor’s price target to $35 (57.7% upside potential) from $30 and reiterated a Buy rating amid expectations of gross margin expansion.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Rosenblatt Securities analyst Kevin Cassidy said on Tuesday that ON Semiconductor’s (ON) gross margin is likely to continue expanding through 2021, given the company’s better product mix and improving fab utilization. “This, followed by better than expected 300mm East Fishkill production yields, drive upside to our [gross margin] GM estimates in 2022,” Cassidy wrote in a note to investors.
On Aug. 8, ON reported better-than-expected top-line results for 2Q as revenues of $1.21 billion beat analysts’ expectations of $1.18 billion. The company’s adjusted EPS of $0.12 surpassed Street estimates of $0.02.
Benchmark analyst Ruben Roy raised the stock’s price target to $28 (26.2% upside potential) from $24 and reaffirmed a Buy rating. Roy wrote in a research note that he “is encouraged with ON’s gross margin outlook and a renewed focus on longer-term gross margin expansion”.
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 13 Buys, 1 Hold and 3 Sells. The average price target of $24.16 implies upside potential of 8.9%. (See ON stock analysis on TipRanks).
Related News:
Canada Goose Slips 4% On Depressed 2Q Sales Outlook
Casper Sleep Beats 2Q Revenues; Shares Dip Over 10%
Nio Rising 8% On Record-High Quarterly Deliveries; But Street Cautious
