ON Semiconductor (ON) PT Raised to $45 at UBS

UBS analyst Timothy Arcuri raised the price target on ON Semiconductor (NASDAQ: ON) to $45.00 (from $40.00) while maintaining a Neutral rating.

The analyst commented, "ON reported an ~in-line Mar Q, and guided Jun Q slightly ahead of our and Street models; however, commentary on the call flagged a number of headwinds that effectively dampen the trajectory of recovery into 2H25/2026. ON had previously flagged margin pressure from fab under-loading, but the effects are greater than we expected and are being compounded by competitive pricing pressure given weak demand. ON is taking action to offset the weakness via cost reduction/transformation plans, and some new SiC programs with China EV makers should start to ramp in 2H:25. This should help, but its big TSLA exposure is still a near-term headwind for its SiC business and we simply see a much slower EPS recovery. All in, we raise C26E EPS from $3.36 to $3.73 as ON's cost actions should reinject some leverage next near and with an unchanged 12x multiple, our PT increases $5 to $45; we reiterate our Neutral rating."

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