Citi downgraded On Semiconductor to Neutral from Buy with a price target of $77, down from $85. The analyst believes the company’s silicon carbide exposure will hurt its multiple. The silicon carbide market, which represents 12% of On’s 2024 sales, is experiencing not only slowing growth but lower pricing which should eventually lead to lower margins as well, the analyst tells investors in a research note. The firm expects the stock’s multiple to have headwinds as long as the silicon carbide business remains a material part of revenue and earnings.
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