ON Semiconductor At 'Cyclical Trough' After Q1 Earnings Beat, Analyst Sees 25% Upside
Portfolio Pulse from Surbhi Jain
ON Semiconductor Corp (NASDAQ:ON) saw its stock rise over 4% after reporting Q1 earnings that beat expectations, with a 3.85% EPS surprise and a 0.70% revenue surprise. Despite a cautious Q2 outlook with expected revenue decline due to market weakness and soft China orders, JPMorgan analyst Harlan Sur remains bullish, setting a December 2024 price target of $85, indicating a 25% upside. Sur's optimism is based on the company's resilience and potential for growth in the second half of the year, particularly in its silicon semiconductor and silicon carbide businesses.
April 29, 2024 | 8:24 pm
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POSITIVE IMPACT
ON Semiconductor exceeded Q1 earnings expectations and received a bullish price target of $85 by December 2024 from JPMorgan, indicating a strong growth outlook despite short-term challenges.
The positive earnings surprise and the bullish outlook from a reputable analyst like Harlan Sur of JPMorgan suggest a strong confidence in ON Semiconductor's ability to navigate current market challenges and capitalize on future growth opportunities, particularly in the second half of the year. This is likely to foster investor optimism and could drive the stock price up in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100