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Investing.com - BofA Securities has raised its price target on ON Semiconductor (NASDAQ:ON) to $62.00 from $52.00 while maintaining a Neutral rating on the stock. The company, currently valued at $22.13 billion, trades at a P/E ratio of 50.63, with analyst targets ranging from $40 to $70.
The price target increase comes amid recent geopolitically motivated shortages at Dutch-headquartered but China-owned auto discrete chip vendor Nexperia, which are impacting automotive supply chains.
BofA Securities notes that ON Semiconductor is the chip vendor most exposed to this situation, though the company has been exiting much of its low-end discrete portfolio, especially in consumer electronics and phones.
The firm questions whether ON Semiconductor has enough desire to requalify its parts to backfill for incremental industry shortages, given Nexperia’s historically lower gross margins of approximately 35% compared to ON’s strategy of improving its product portfolio mix.
BofA Securities acknowledges ON Semiconductor’s relatively lower valuation, undemanding near-term estimates with third-quarter earnings scheduled for November 3, and potential to develop a position in the data center power market.
In other recent news, OneConnect Financial Technology Co., Ltd. announced that trading of its American depositary shares on the New York Stock Exchange is expected to be halted before market open on October 30. This halt is part of a privatization plan where OneConnect would become an indirect wholly owned subsidiary of Ping An Insurance Group of China. Ascendis Pharma A/S disclosed the grant of 31,710 warrants to employees, with each warrant allowing the holder to subscribe for one ordinary share at an exercise price of $208.71. Additionally, Ascendis Pharma reported an increase in its share capital following the exercise of outstanding warrants, resulting in the issuance of 543,748 new ordinary shares.
Scorpius Holdings, Inc. announced the issuance of a $500,083 non-convertible promissory note to an institutional investor, with the potential for up to $5 million in additional funding. The note carries a 5% annual interest rate and matures in October 2025. In another development, onsemi has entered into an agreement to acquire Aura Semiconductor’s Vcore power technologies and associated intellectual property licenses. This acquisition aims to enhance onsemi’s capabilities in AI data center power management solutions and is expected to close in the fourth quarter of 2025.
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