EU and US could reach trade deal this weekend - Reuters
Investing.com - Mizuho (NYSE:MFG) raised its price target on ON Semiconductor (NASDAQ:ON) to $72.00 from $60.00 on Wednesday, maintaining an Outperform rating on the power semiconductor company. The semiconductor manufacturer, currently valued at $22.5 billion, trades at a P/E ratio of 36x and shows GOOD financial health according to InvestingPro analysis.
The research firm cited ON’s strong positioning in automotive markets, particularly in electric vehicles, advanced driver assistance systems, and software-defined vehicles through its power, connectivity, and sensing portfolio.
Mizuho highlighted industrial growth opportunities for ON through Industry 4.0 and Internet of Things applications, while noting the company’s TREO platform is expected to generate approximately $1 billion in incremental revenue by 2030 with gross margins exceeding 65%.
The firm acknowledged some headwinds for ON’s silicon carbide business due to slowing electric vehicle adoption in the United States and Europe, but pointed to cost advantages from the company’s 300mm manufacturing capabilities.
Mizuho also mentioned potential near-term risk related to Section 232 regulations affecting analog semiconductors, which could impact the sector between July 2-9.
In other recent news, VEON Ltd (AS:VON). released its unaudited interim financial statements for the first quarter of 2025, providing investors with updated information on its financial performance. This filing was submitted to the U.S. Securities and Exchange Commission as part of a Form 6-K submission. Meanwhile, MINISO Group Holding Limited has filed multiple Next (LON:NXT) Day Disclosure Returns with the SEC, detailing changes in its issued share capital. These filings are part of MINISO’s regulatory requirements to maintain transparency about its capital structure. On the analyst front, ON Semiconductor received a neutral rating from Cantor Fitzgerald, which expressed concerns about the company’s exposure to the automotive market. However, Mizuho raised its price target for ON Semiconductor to $60, citing a potential recovery in automotive demand and ongoing strength in China. Mizuho also highlighted ON Semiconductor’s ramp-up in design wins for IGBTs and silicon carbide components. The company plans to use its free cash flow for share buybacks, while gross margins are expected to remain flat in the latter half of 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.