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Investing.com - Loop Capital raised its price target on ON Semiconductor (NASDAQ:ON) to $68.00 from $55.00 on Wednesday, while maintaining a Buy rating on the semiconductor manufacturer’s stock. The company, currently trading at $57.62 with a market capitalization of $24.08 billion, shows signs of being slightly undervalued according to InvestingPro analysis.
The price target increase represents a significant 24% upside from the previous target, reflecting Loop Capital’s more optimistic outlook on the company’s future earnings potential.
Loop Capital’s new price target assumes ON Semiconductor shares will trade at 16.0x the firm’s fiscal year 2026 non-GAAP earnings per share estimates, which exclude stock-based compensation expenses.
The investment firm chose fiscal year 2026 as the basis for its valuation to incorporate more balanced cyclical considerations for the semiconductor industry.
Loop Capital also outlined a bull-case scenario where ON Semiconductor could achieve non-GAAP earnings per share of $8.75-$9.00 by fiscal year 2029 if the company maintains 10-12% compound annual revenue growth from fiscal year 2024 through 2029, while reaching 53% non-GAAP gross margin and 40% operating margin targets.
In other recent news, ON Semiconductor has been the focus of analyst attention with CFRA upgrading the company’s stock rating and raising the price target to $75. CFRA’s upgrade is based on expectations of margin recovery and increased earnings per share by 2027, supported by advancements in electric vehicles and Advanced Driver Assistance Systems. Meanwhile, Cantor Fitzgerald maintained its Neutral rating and $55 price target, citing potential gross margin expansion but also highlighting concerns about ON Semiconductor’s margins compared to industry averages. Mizuho (NYSE:MFG) also raised its price target for ON Semiconductor to $72, emphasizing the company’s strong position in automotive markets and industrial growth opportunities. In other developments, Medirom Healthcare Technologies announced the approval of new performance-based stock options under its 2024 Equity Incentive Compensation Plan. These options are contingent on the company achieving specific revenue targets, reflecting a strategic focus on growth. Additionally, VEON Ltd (AS:VON). released its unaudited financial results for the first quarter of 2025, providing investors with insights into its recent financial performance.
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