ON Semiconductor stock price target raised to $51 at Truist Securities

Investing.com - Truist Securities has raised its price target on ON Semiconductor (NASDAQ:ON) to $51.00 from $49.00 while maintaining a Hold rating on the stock. The new target sits slightly above the current trading price of $49.42, though InvestingPro data suggests the stock may be undervalued with a Fair Value above the current Truist target.

The semiconductor company reported third-quarter results that modestly exceeded expectations, with fourth-quarter guidance aligning with market forecasts, according to Truist’s analysis. Despite these results, ON’s revenue has declined by 16.13% over the last twelve months, with analysts forecasting a 15% sales decline for the current fiscal year.

Truist noted that ON Semiconductor management described business conditions as "more stabilizing than recovering," reflecting a broader trend observed across the semiconductor sector where demand has plateaued rather than showing significant growth.

The firm adjusted its calendar year 2026 earnings per share estimate downward to $2.98 from the previous $3.16 projection, despite the higher price target.

Truist’s new $51 price target represents a multiple of 17x earnings, which the firm characterized as a 10x discount to recently higher-valued peers in the semiconductor space.

In other recent news, ON Semiconductor reported its third-quarter earnings, showcasing an earnings per share (EPS) of $0.63, which surpassed the forecast of $0.59. The company’s revenue also exceeded expectations, reaching $1.55 billion compared to the anticipated $1.52 billion. Analysts from TD Cowen raised their price target for ON Semiconductor to $60, citing stabilizing demand after the company’s quarterly results showed a modest beat and raise. Benchmark maintained its Buy rating and $60 price target, noting the company’s performance exceeded expectations with guidance aligning with market projections. CFRA adjusted its price target to $64 from $75, maintaining a Buy rating while highlighting the company’s slightly better-than-expected third-quarter results and in-line fourth-quarter guidance. The firm also noted encouraging stabilization in ON Semiconductor’s key Automotive and Industrial markets, which contribute to 78% of its sales. These developments reflect a positive outlook from analysts, emphasizing the company’s performance amid growth in AI and stabilizing core markets.

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