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Investing.com - CFRA has reduced its price target on ON Semiconductor (NASDAQ:ON) to $64.00 from $75.00 while maintaining a Buy rating on the stock. Currently trading at $50.46, the semiconductor company appears undervalued according to InvestingPro Fair Value estimates, despite its high P/E ratio of 66.34.
The research firm cited ON Semiconductor’s slightly better-than-expected third-quarter results and in-line fourth-quarter guidance, noting encouraging stabilization in the company’s key Automotive and Industrial end markets, which represent 78% of sales.
CFRA maintained its 2025 earnings per share estimate at $2.30 but lowered its 2026 projection to $2.92 from $3.22 and its 2027 forecast to $4.28 from $5.00, applying a price-to-earnings multiple of 15 times its 2027 EPS view.
The firm highlighted ON Semiconductor ’s accelerating push into the artificial intelligence market as a notable potential long-term growth revenue source, which the company expects to generate approximately $250 million in 2025 revenue, leveraging its power and sensing portfolio across the supply chain.
CFRA indicated that while it sees potential for a broad-based restocking cycle given lean customer inventories, geopolitical and macroeconomic uncertainties remain unknown factors that could impact future performance. InvestingPro data shows ON’s revenue declined 16.13% over the last twelve months, though the company maintains a strong financial health score of 2.55 (GOOD) with liquid assets exceeding short-term obligations. Discover the full financial picture in ON’s comprehensive Pro Research Report, available with an InvestingPro subscription.
In other recent news, ON Semiconductor Corporation announced its Q3 2025 earnings, reporting an earnings per share (EPS) of $0.63, which exceeded the analyst forecast of $0.59. The company’s revenue also surpassed expectations, reaching $1.55 billion compared to the anticipated $1.52 billion. These results indicate a strong financial performance for the quarter. Despite the positive earnings and revenue figures, the company’s stock experienced a decline in pre-market trading. Analysts continue to monitor the company’s performance closely. The earnings beat and revenue growth are notable developments for investors. These recent developments highlight ON Semiconductor’s current financial standing.
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