ON Semiconductor (ON) PT Lowered to $75 at Stifel on Lower EPS Power vs. Analog Peers

Stifel analyst Tore Svanberg lowered the price target on ON Semiconductor (NASDAQ: ON) to $75.00 (from $90.00) while maintaining a Hold rating.

The analyst commented, "On Wednesday, September 16, we attended ON's 2026 Financial Analyst Day, featuring presentations from Hassane El-Khoury, President and CEO, Achyut Shah, Group President of the Power Solutions Group, Sudhir Gopalswamy, Group President of the Analog & Mixed-Signal and Intelligent Sensing Groups, and Thad Trent, EVP and CFO. We came away encouraged on strategy, specifically (i) an end-to-end AI data center franchise taking content from ~$15K to ~$115K per rack by CY30, (ii) the Embedded Power Platform (EPP), (iii) physical AI at a $6bn TAM, and (iv) auto projected to outgrow SAAR by high single digits. That said, the CY30 model of +12-14% revenue CAGR, 53% GM and 38% OM is potentially below expectations (see changes vs. the prior LT model below). The NT to MT GM path also remains unclear, weighing on EPS power versus analog peers. Maintain Hold, TP to $75 (from $90) on 16.5x CY27E P/E."

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