In a report released today, Ruben Roy from MKM Partners reiterated a Buy rating on ON Semi (NASDAQ: ON), with a price target of $28. The company’s shares opened today at $18.42, close to its 52-week low of $17.67.
Roy noted:
“We are reiterating our Buy rating and $28 price target on ON shares following recent weakness. While we recognize recent commentary from some semiconductor companies that suggest the potential for a less robust demand environment in coming months, ON shares have meaningfully under performed the broader semiconductor group since the company’s latest earnings report on July 30th (ON -20% versus SOX – flat). We believe that ON’s own commentary on its Q2 conference call regarding the potential for lead time contraction beginning in Q4 or Q1 2019 drove initial cycle fears relative to ON shares. Looking ahead, we believe that the company’s increased focus on higher margin growth markets, market share gains, and an EPS buffer from share buy backs should limit further downside in the event that revenue growth does slow from above company target levels.”
According to TipRanks.com, Roy is a 4-star analyst with an average return of 8.2% and a 57.4% success rate. Roy covers the Consumer Goods sector, focusing on stocks such as Skyworks Solutions, Maxim Integrated, and Cirrus Logic.
ON Semi has an analyst consensus of Moderate Buy, with a price target consensus of $27.05.
See today’s analyst top recommended stocks >>
Based on ON Semi’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $155 million. In comparison, last year the company earned revenue of $1.34 billion and had a net profit of $93.9 million.
Based on the recent corporate insider activity of 100 insiders, corporate insider sentiment is negative on the stock.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
ON Semiconductor Corp. engages in the design, manufacture, and marketing of portfolio of semiconductor components. It operates through the following segments: Power Solutions Group, Analog Solutions Group, and Image Sensor Group.
