ON Semiconductor Set for Growth: Analysts Cite SiC and Auto Market Stability As Catalysts
Portfolio Pulse from Anusuya Lahiri
Analysts from Benchmark, Goldman Sachs, and BofA Securities provided updates on ON Semiconductor (NASDAQ:ON), citing SiC and the auto market as key growth drivers. Despite near-term challenges, such as inventory digestion and tepid demand, the long-term outlook remains positive due to ON's exposure to secular growth areas like Electrification and ADAS. Price targets were adjusted, reflecting cautious optimism about ON's growth trajectory amidst global SiC capacity expansion and a shift towards lower content auto platforms. ON's stock is part of ETFs QCLN and SHOC, offering investors additional exposure.
April 30, 2024 | 7:31 pm
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POSITIVE IMPACT
ON Semiconductor receives mixed analyst views with adjusted price targets, reflecting cautious optimism on its growth potential, especially in SiC and auto markets.
Analyst updates indicate a positive yet cautious outlook for ON Semiconductor, focusing on its strategic positioning in SiC and the auto market. Adjusted price targets suggest a belief in the company's growth potential despite near-term headwinds, likely leading to a positive short-term impact on the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) includes ON Semiconductor, offering exposure to its growth in the clean energy sector.
QCLN's inclusion of ON Semiconductor as part of its portfolio links the ETF's performance to ON's growth, especially in clean energy and SiC markets. This suggests a positive impact on QCLN's value as ON's growth prospects in these areas remain strong.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
EA Series Trust Strive U.S. Semiconductor ETF (SHOC) provides investment exposure to ON Semiconductor, reflecting its sector-specific growth potential.
SHOC's inclusion of ON Semiconductor highlights the ETF's exposure to the semiconductor sector's growth, with ON's developments in SiC and the auto market contributing positively to its prospects. This alignment suggests a beneficial impact on SHOC's performance as ON navigates its growth trajectory.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
NEUTRAL IMPACT
GlobalFoundries Inc's foundry relationship with ON Semiconductor ending in 2025 could impact ON's long-term gross margin expansion.
The mention of GlobalFoundries Inc (GFS) in relation to ON Semiconductor's long-term strategy suggests a neutral impact in the short term. The ending of this relationship is part of ON's broader strategy for gross margin expansion, but its immediate effect on GFS's stock is less direct.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50