ON Semiconductor Faces Analyst Downgrades and Revenue Challenges

ON Semiconductor under scrutiny as analysts lower ratings and price targets. Recent reviews reveal growing concerns about revenue and ROE. Investors should note potential impacts on stock performance.

Date: 24-03-2025

AI Rating: 4

Analyst Ratings Overview: 28 analysts have recently provided a mix of bullish to bearish opinions on ON Semiconductor. The latest ratings show a shift in sentiment, with multiple analysts adjusting their price targets downwards due to perceived challenges in performance.

Price Target Adjustments: The average price target has dropped 19.25% from $76.21 to $61.54. The current high estimate stands at $85.00, while the low is $44.00, indicating analysts foresee a wide range of possible outcomes for ON Semiconductor's stock price.

Revenue Growth Concerns: ON Semiconductor has reported a revenue decline of approximately -14.65% over the past three months. This downturn portrays challenges in generating top-line earnings and suggests that the company is trailing behind its peers within the Information Technology sector.

Return on Equity: The Return on Equity (ROE) for ON Semiconductor is at 4.37%, notably below industry standards. This measure indicates inefficiencies in utilizing equity capital to deliver returns, signaling potential difficulties in attracting and retaining investors.

Net Margin Metrics: Contrastingly, ON Semiconductor's net margin is strong at 22.06%, indicating effective cost management. This performance suggests the company maintains a level of operational efficiency, helping it withstand broader market challenges.

In light of these insights, the review illustrates mixed signals for investors. The decreased revenue growth and below-average ROE may induce caution among potential investors, while healthy net margins provide a somewhat positive aspect of the company's financial health.

Stocks: ON