Goldman Sachs initiates ON Semiconductor stock with Neutral rating

Published 10/07/2025, 11:38
Goldman Sachs initiates ON Semiconductor stock with Neutral rating

Investing.com - Goldman Sachs initiated coverage on ON Semiconductor (NASDAQ:ON) with a Neutral rating and a price target of $60.00 on Thursday. The semiconductor company, currently trading at $57.77 with a market capitalization of $24.1 billion, shows good overall financial health according to InvestingPro analysis.

The investment bank views ON Semiconductor as a provider of power and sensing products with a focus on automotive and industrial end markets.

Goldman Sachs believes ON is well positioned to benefit from a cyclical recovery due to its prudent channel management and restructuring/cost initiatives.

The firm noted that ON Semiconductor’s margin recovery could be partly muted by several factors, including competitive pressures in the image sensor business.

Greater competition in the silicon carbide (SiC) market was also cited as a potential challenge for the semiconductor company’s margins.

In other recent news, ON Semiconductor has been the focus of several analyst updates and strategic evaluations. CFRA upgraded ON Semiconductor’s stock rating from Buy to Buy, raising the price target to $75, reflecting confidence in margin recovery and earnings growth potential through 2027. Loop Capital also increased its price target to $68, maintaining a Buy rating, and highlighted the company’s potential for earnings per share growth by 2029, assuming continued revenue growth and margin improvements. Mizuho (NYSE:MFG) raised its price target to $72, citing ON’s strong positioning in automotive markets and industrial growth opportunities, despite some concerns about the silicon carbide business. Meanwhile, Cantor Fitzgerald maintained a Neutral rating with a $55 price target, noting positive margin expansion factors but expressing concerns about ON’s gross margins compared to industry averages. Additionally, Medirom Healthcare Technologies announced the approval of new performance-based stock options under its 2024 Equity Incentive Compensation Plan, contingent on future revenue milestones. The options will be exercisable from 2026 through 2030, with specific conditions tied to company performance. These developments provide insights into the strategic directions and financial prospects of both companies.

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