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Benzinga
218 days

ON Semi Sees Utilization Cuts As EV Demand Softens, Analyst Warns

1. Needham analyst maintained 'Buy' rating on ON Semiconductor but lowered price target. 2. Soft demand persists in key markets, affecting future revenue projections. 3. Management plans to reduce fab utilization rates, potentially lowering margins. 4. Chinese EV companies prefer ON's technology despite local government suggestions. 5. Fourth-quarter revenue and EPS estimates revised down by the analyst.

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FAQ

Why Bearish?

Weak demand and lowered estimates indicate potential revenue decline. Past instances of similar revisions led to stock price drops.

How important is it?

The article discusses vital performance indicators that significantly influence ON's future outlook.

Why Short Term?

Immediate demand issues suggest short-term performance will suffer. Historical precedence shows quick rebounds but not without initial dips.

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