On Semiconductor: JP Morgan Keeps Neutral, Raises PT to $56 from $48

On Semiconductor: JP Morgan Keeps Neutral, Raises PT to $56 from $48

On Monday, July 2, 2025, U.S. stocks traded higher midway through trading, with the S&P 500 gaining more than 1% [1]. The Dow traded up 1.27% to 44,141.11 while the NASDAQ climbed 1.82% to 21,026.44. The S&P 500 also rose, gaining 1.37% to 6,323.33 [1].

The financial markets were influenced by various factors, including the performance of individual stocks and sector-specific movements. Communication services shares jumped by 2.3% on Monday, while energy stocks fell by 0.6% [1].

On Semiconductor Corp. (ON) shares dipped more than 12% on Monday after the company reported its fiscal second-quarter 2025 results. The company reported a quarterly revenue decline of 15.36% year-on-year (Y/Y) to $1.47 billion, topping the analyst consensus estimate of $1.45 billion. The adjusted EPS of 53 cents is in line with the analyst consensus estimate. Onsemi expects third-quarter adjusted revenue of $1.465 billion-$1.565 billion, compared to the analyst consensus estimate of $1.490 billion. The company expects quarterly adjusted EPS of 54 cents to 64 cents (compared to the analyst consensus estimate of 58 cents) and an adjusted gross margin of 36.5%-38.5% [1].

In a separate development, JP Morgan has kept its neutral stance on On Semiconductor but has raised its price target from $48 to $56 [1]. This move reflects the investment bank's assessment of the company's financial performance and future prospects.

The financial markets also saw significant movements in other equities. BT Brands, Inc. (BTBD) shares shot up 103% to $3.3201, driven by strategic initiatives including a potential merger [1]. Verb Technology Company, Inc. (VERB) shares surged 171% to $25.78 after announcing a $558 million private placement [1]. CommScope Holding Company, Inc. (COMM) shares were up 91% to $14.88 following Amphenol's announcement of an acquisition for $10.5 billion [1].

Meanwhile, Replimune Group, Inc. (REPL) shares dropped 26% to $5.59 after the FDA unexpectedly rejected its skin cancer treatment, triggering a stock plunge and a wave of investor outrage [1]. TG Therapeutics, Inc. (TGTX) shares were down 15% to $29.84 after reporting worse-than-expected second-quarter EPS and sales [1]. Krystal Biotech, Inc. (KRYS) was down, falling 14% to $135.23 following the release of its second-quarter financial results [1].

Commodities also saw notable movements. Oil traded down 1.5% to $66.30, while gold traded up 0.8% at $3,425.70 [1]. Silver traded up 1.1% to $37.340, and copper rose 0.2% to $4.4425 [1].

European shares were higher today, with the eurozone's STOXX 600 rising 0.90%, Spain's IBEX 35 Index surging 1.84%, London's FTSE 100 rising 0.66%, Germany's DAX 40 gaining 1.42%, and France's CAC 40 rising 1.14% [1]. Asian markets closed mostly higher on Monday, with Japan's Nikkei 225 falling 1.25%, Hong Kong's Hang Seng gaining 0.92%, China's Shanghai Composite gaining 0.66%, and India's BSE Sensex rising 0.52% [1].

References:
[1] https://www.benzinga.com/markets/market-summary/25/08/46834921/crude-oil-falls-1-5-on-semiconductor-shares-plunge-after-q2-results