ON Semiconductor stock initiated at neutral by Cantor Fitzgerald

Published 18/06/2025, 12:26
ON Semiconductor stock initiated at neutral by Cantor Fitzgerald

Cantor Fitzgerald initiated coverage on ON Semiconductor (NASDAQ:ON) Wednesday with a neutral rating and a $55.00 price target. According to InvestingPro data, the company maintains a GOOD financial health score, with analyst targets ranging from $33 to $72.11.

The research firm cited concerns about ON Semiconductor’s "overexposure to Auto" market segments, noting this positioning "isn’t ideal into the upcycle." Cantor Fitzgerald’s price target represents a multiple of 17 times the company’s projected calendar year 2026 earnings per share, while the stock currently trades at a P/E ratio of 35.4x.

The semiconductor manufacturer’s stock has experienced a significant rally over the past two months, with shares climbing more than 60% during that period. This substantial run-up factors into Cantor Fitzgerald’s cautious stance on the stock.

The firm stated that "having confidence in the structural transformation will take time," suggesting investors may need patience before seeing results from ON Semiconductor’s ongoing business changes. This transformation process appears to be a key consideration in the neutral rating decision.

Cantor Fitzgerald concluded that a "mid-teens multiple for this asset is fair," and with the recent stock appreciation, the firm now views "upside as more limited" for ON Semiconductor shares.

In other recent news, ON Semiconductor has seen its price target increased by Mizuho (NYSE:MFG) to $60.00 from $52.00, maintaining an Outperform rating. The investment firm anticipates that automotive demand will recover in the second half of 2025, with ON Semiconductor experiencing growth in China through design wins in IGBTs and silicon carbide components. The company is also advancing its TreoFETs product line, aiming for $1 billion in revenue by 2030. Meanwhile, MINISO Group Holding Limited has made its latest regulatory filings public, providing updates on financial and operational activities for June 2025. The company continues to comply with U.S. securities laws by submitting Form 6-K and plans to maintain annual reporting under Form 20-F. In other filings, JBS N.V. announced a name change from JBS B.V., as detailed in a Form 6-K submitted to the SEC. The company, operating in the meat packing industry, provided essential corporate information in the filing. JBS S.A. also filed a 6-K with the SEC, fulfilling its regulatory obligations without detailing new business developments or financial results.

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