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Investing.com -- Truist downgraded ON Semiconductor Corporation (NASDAQ:ON) to "hold" from "buy" amid deteriorating demand trends and ongoing business restructuring.
The brokerage set a new price target of $60, implying a 4x discount to peers at 20x 2026 EPS.
“Despite the recent sell-off in the shares, we see a more cautious stance on the stock as warranted until estimates,” analyst said.
Management confirmed plans to exit certain businesses this year, which will pressure both revenue and margins.
Truist lowered its earnings estimates, cutting CY25 EPS to $3.18 from $4.36 and CY26 EPS to $3.76 from $5.33.
“Demand for diversified end market semis is mixed to weak, with ON sounding particularly weak.”
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