ON Semiconductor stock holds steady as Stifel reiterates $50 price target

Investing.com - ON Semiconductor (NASDAQ:ON), a prominent player in the semiconductor industry with a market capitalization of $20.45 billion and strong financial health score of 2.52 (GOOD) according to InvestingPro, received a Hold rating reiteration from Stifel on Monday, maintaining its $50.00 price target following the company’s second-quarter earnings report.

The semiconductor manufacturer reported revenue of $1.47 billion for the second quarter of 2025, representing a 1.6% increase quarter-over-quarter but a 15.4% decrease year-over-year, reflecting broader industry trends with revenue declining 18.28% over the last twelve months. This figure exceeded Stifel’s estimate of $1.45 billion by 1.3%, with management noting "continued signs of early stabilization" and no order pull-ins related to tariffs.

ON Semiconductor’s third-quarter revenue outlook of $1.515 billion projects a 3.2% sequential increase but a 14.0% year-over-year decline. This guidance came in 2.4% higher than Stifel’s previous estimate of $1.48 billion.

Stifel highlighted a mixed near-term outlook for the company, citing continued margin pressure and disappointing free cash flow results for the second quarter. These challenges were partially offset by several notable new partnerships and momentum within the company’s growing data center and artificial intelligence segment.

The investment firm maintained its 12-month price target of $50, representing a 14.7x CY26E P/E multiple, which Stifel noted is closely aligned with the current stock price following the earnings report. The stock currently trades at a P/E ratio of 33.22x, with a robust current ratio of 4.95 indicating strong liquidity. According to InvestingPro analysis, ON Semiconductor appears undervalued based on its Fair Value assessment.Get access to 13 additional exclusive ProTips and comprehensive valuation metrics with InvestingPro, including detailed insights from our Pro Research Report covering what really matters for ON Semiconductor’s future prospects.

In other recent news, ON Semiconductor reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.53, which met market expectations. The company’s revenue came in at $1.47 billion, slightly surpassing the anticipated $1.45 billion. Despite this revenue beat, the stock experienced a decline. Additionally, Goldman Sachs reiterated its Neutral rating on ON Semiconductor, maintaining a price target of $60.00. The firm’s decision followed the company’s quarterly results, which were in line with market expectations for both revenue and earnings per share. These recent developments highlight the company’s steady performance in terms of financial metrics.

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