Benchmark Reiterates Buy Rating on ON Semiconductor (ON)

Benchmark analyst David Williams reiterated a Buy rating and $60.00 price target on ON Semiconductor (NASDAQ: ON).

The analyst commented, "ON delivered upside to 3Q results with the guidance about as expected with continued stabilization across its core end markets with notable strength in the A.I. datacenter, which has become a $250M business in the LTM. While the Treo platform adoption and AI Datacenter traction were highlights, management’s tone was slightly less cautious than prior quarters but noticeably absent of conviction end demand is meaningfully improved. The Sept period beat was driven by better-than-expected Auto strength and a short-term utilization boost from internal die bank inventory builds for mass-market products, though the company suggests the full impact will take a few quarters to fully work through. Growth in SiC has moderated on shifting EV mix toward PHEVs and rising competition from domestic Chinese suppliers, but ON’s Treo platform and newly launched vertical GaN technology offer meaningful new growth vectors as adoption ramps. We maintain our Buy rating and $60 PT."

For an analyst ratings summary and ratings history on ON Semiconductor click here. For more ratings news on ON Semiconductor click here.

Shares of ON Semiconductor closed at $50.46 yesterday.

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