ON Semiconductor's Strong Position in Silicon Carbide Excites Analyst Despite Macroeconomic Challenges
Portfolio Pulse from Anusuya Lahiri
Piper Sandler analyst Harsh V. Kumar reaffirmed an Overweight rating on ON Semiconductor Corp (NASDAQ:ON) with a price target of $135. Despite macroeconomic challenges, Kumar believes ON is on track to perform well due to its strong position in Silicon Carbide (SiC) and growth in other automotive products. ON has $20 billion in long-term supply agreements, $11 billion of which are related to SiC products. The company is on track to exit this year with roughly $1 billion of SiC revenues and expects the SiC business operating income to exceed corporate operating income by the end of 2025.
September 13, 2023 | 8:15 pm
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ON Semiconductor Corp is expected to perform well despite macroeconomic challenges due to its strong position in Silicon Carbide (SiC) and growth in other automotive products. The company has $20 billion in long-term supply agreements, $11 billion of which are related to SiC products.
The reaffirmation of the Overweight rating by Piper Sandler analyst Harsh V. Kumar indicates a positive outlook for ON Semiconductor Corp. The company's strong position in Silicon Carbide (SiC) and growth in other automotive products, along with $20 billion in long-term supply agreements, are expected to drive its performance despite macroeconomic challenges. This is likely to have a positive impact on the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100