Roth/MKM Starts ON Semiconductor (ON) at Buy

Roth/MKM analyst Suji Desilva initiates coverage on ON Semiconductor (NASDAQ: ON) with a Buy rating and a price target of $75.00.

The analyst comments "In 4Q23, we forecast revenue/EPS of $2.0B (decline 8.3% q/q)/ $1.20, and for CY24, revenue/EPS of $8.2B (decline 1% y/y)/$4.90, both roughly in-line with current consensus. Our muted CY24 forecast reflects near-term demand pressure across both automotive and renewable energy end markets. Our ON price target of $75 represents a CY24 P/E of 15.3x, in-line versus the overall technology peers CY24 average P/E of 14.5x reflecting ON’s relative growth opportunity. Key investment risks to ON’s share appreciation include: 1) dependence on growth in the automotive/EV/ industrial end markets; 2) competition in automotive/power semiconductor segments; 3) exposure to semiconductor manufacturing investment cycles; and 4) ability to drive scale cost efficiencies, particularly in its newer SiC manufacturing chain."

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 $67.38 yesterday.

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