ON Semiconductor price target raised to $95 from $77 at Deutsche Bank

Deutsche Bank analyst Ross Seymore raised the firm’s price target on ON Semiconductor to $95 from $77 and keeps a Buy rating on the shares. The firm notes ON delivered a solid beat in Q4 2022, and despite macro headwinds impacting its Q1 2023 guide once again proved the merits of its transformation by expecting strong profitability despite an otherwise "conservative" outlook. Beyond the headline report/guide, the firm also takes comfort in the company’s expansion of its SiC funnel via newly announced wins at key customers and maintained gross margin headwind. Overall, despite clearly rising macro/cyclical headwinds, ON remains solidly on track with its strategic transformation on revenue drivers and is delivering the targeted cross-cycle margin improvement as a result, Deutsche adds.