Onsemi: Stifel cuts target price to $90 from $107

Stifel has adjusted its price target for ON Semiconductor (NASDAQ:ON), lowering it to $90 from $107 while maintaining a Hold rating on the stock. This revision reflects a reassessment of the company’s near-term outlook amid evolving market conditions. The new target is significantly below the stock’s current trading price of approximately $60.28, suggesting a more cautious stance from the firm.

Analyst Tore Svanberg previously highlighted ON Semiconductor’s strong position in the Intelligent Power and Sensing market, with a total addressable market of $74 billion. The company is projected to achieve a 7%-9% CAGR in revenue over the next five years, a marked improvement from the 16.13% decline in the past twelve months. ON Semiconductor’s diversified customer base and exposure to high-growth sectors such as Automotive and Industrial are seen as exposure to high-growth sectors.

Despite these strengths, Stifel acknowledged potential headwinds in 2025 that could pressure margins. The firm also noted that ON Semiconductor’s business transformation efforts have improved operational efficiency and margin resilience during downturns. The company’s robust financial position, as indicated by a Current Ratio of 5.23, remains a key support factor.

Other analysts have maintained or raised their price targets for ON Semiconductor, including Evercore ISI $80 target and Piper Sandler with a revised $65 target. The stock currently has an average analyst rating of Overweight, with a mean price target of $110.76.