Exane downgrades ON Semiconductor to Unperform on SiC caution

Exane BNP Paribas analyst David O’Connor downgraded ON Semiconductor (ON) to Underperform from Neutral with a price target of $55, down from $74. The analyst has “grown more cautious” about end demand for silicon carbide, especially among U.S. suppliers. News of a potential cancellation of a low-end Tesla (TSLA) electric vehicle may make On’s silicon carbide forecasts “more difficult to reach,” the analyst tells investors in a research note.