Stifel Cuts onsemi Target to $75, Says 2030 Outlook Falls Short
ON sits 53% above its 52-week low of $44.56.
Summary
Stifel lowered its price target on onsemi to $75 from $90 and maintained a Hold rating after the company's analyst day, saying the 2030 outlook is potentially below expectations. The firm cited the CY30 model of +12-14% revenue CAGR, 53% gross margin, and 38% operating margin as below prior long-term model expectations, and noted the near-to-medium term gross margin path remains unclear. This follows onsemi's earlier presentation of its 2030 plan targeting roughly $11 billion in revenue and CEO El-Khoury's pushback on AI slowdown fears. The analyst reaction adds a negative data point to the company's long-term guidance, though shares edged up 2% during Wednesday's trading.
At the time of this announcement, ON was trading at $68.17 on NASDAQ in the Technology sector, with a market capitalization of approximately $26.5B. The 52-week trading range was $44.56 to $134.92. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.