ON Semiconductor (ON) PT Lowered to $50 at Rosenblatt

Rosenblatt analyst Kevin Cassidy lowered the price target on ON Semiconductor (NASDAQ: ON) to $50.00 (from $55.00) while maintaining a Neutral rating.

The analyst commented: "Onsemi delivered a Q2 beat and guided Q3 above Street expectations, however, the guide of slightly down Non-GAAP gross margin Q/Q drove shares lower. Despite solid results, investor focus remains on gross margin expansion, where management highlighted it was being cautious on increasing utilization. Signs of stabilization in end-markets are a positive step toward increased utilization rates, but management is looking for a better foundation for a recovery before that occurs (plus customers are cautious). Beyond Automotive & Industrial, onsemi's AI data center business is seeing a robust pipeline. We continue to see gross margin pressure tempering the bull case for ON shares and expect limited upside until utilization begins to pick up steam. We reiterate our Neutral rating and lower our price target from $55 to $50 based on a 15x multiple applied to NTM Non-GAAP EPS."

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Aurora Spine settles patent dispute, secures $600K insider loan
• AI/ML Innovations plans $2M private placement on the CSE