1. BofA's analyst highlights ON's $60 price target despite recent drawdown. 2. Recovery expected in industrial semiconductors, with auto sector lagging till 2025. 3. Tariff risks acknowledged, but diversified stocks are deemed defensive. 4. ON's leverage to Auto/EV sentiment remains compelling post earnings reset. 5. Potential accretion from Allegro MicroSystems may enhance ON's portfolio.
Even with a recent downturn, ON shows strong recovery potential akin to previous semiconductor rebound cycles seen in 2016 and 2020, where stocks rebounded sharply after initial declines, suggesting a favorable setup.
The article provides a positive outlook on ON Semiconductor amid sector recovery trends and specific mentions of stock performance, making it relevant for investors considering semiconductor plays.
Expectations of an improved 2025 for EV sales align with similar recovery dynamics observed in the past, indicating a longer horizon for significant price movements.