ON Semi Receives a Buy from Needham


Needham analyst Rajvindra Gill assigned a Buy rating to ON Semi (NASDAQ: ON) today and set a price target of $30. The company’s shares closed yesterday at $22.92.

Gill commented:

“We hosted ON Semi’s CFO of IR a series of investor meetings on the West Coast. We addressed head on the persistent investor concerns of a cycle peak and the issue of double ordering. According to ON, end demand remains robust, specifically in auto/industrial (7-9%CAGR), and even in the computing market, an area that has stagnated, is seeing an uplift driven by data center and AI computing. Lead times increased slightly, by one day, but are normalizing (similar to MCHP) and distribution inventory is being managed prudently (11-13 weeks). Company is not seeing any signs of double ordering (80% of ON’s revenue are from proprietary products) with no indications of order rate cancellations, order rescheduling, or erratic pricing. ON is increasing of sales to coincide with the increase in the company’s overall revenue forecast (6% CAGR from 3%).”

According to TipRanks.com, Gill is a top 100 analyst with an average return of 20.8% and a 65.6% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Everspin Technologies Inc, Smart Global Holdings Inc, and Adesto Technologies Corp.

Currently, the analyst consensus on ON Semi is Strong Buy and the average price target is $28, representing a 22.2% upside.

In a report issued on April 30, Susquehanna also maintained a Buy rating on the stock with a $28 price target.

See today’s analyst top recommended stocks >>

Based on ON Semi’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $140 million. In comparison, last year the company had a net profit of $78.2 million.

Based on the recent corporate insider activity of 107 insiders, corporate insider sentiment is negative on the stock. Most recently, in February 2018, Daryl Ostrander, a Director at ON bought 20,000 shares for a total of $66,800.

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.

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts