Global Finance News
14 Jul 2026, 10:15
onsemi (ON) Stock Falls After TD Cowen Lowers Price Target
onsemi (NASDAQ: ON) shares dropped 5.8% on Monday after TD Cowen lowered its price target on the semiconductor manufacturer to $95 from $110 while maintaining a "Buy" rating.
The reduced price target reflects a more cautious near-term outlook as onsemi continues to face softer demand across its automotive and industrial end markets. While the firm remains constructive on the company's long-term prospects, the lower target suggests that a recovery in key markets may take longer than previously expected.
onsemi has been navigating a prolonged inventory correction, particularly in the automotive and industrial semiconductor segments, where customers have continued to reduce inventories amid slowing demand. Although the company remains well positioned in high-growth markets such as electric vehicles, advanced driver assistance systems (ADAS), and industrial power management, near-term revenue growth has been pressured by weaker customer orders.
Despite lowering its valuation target, TD Cowen maintained its Buy rating, indicating continued confidence in onsemi's competitive position and long-term earnings potential once industry conditions improve.
Monday's selloff suggests investors focused on the more conservative valuation outlook, adding to concerns about the pace of recovery in the analog and automotive semiconductor markets. Investors will now look ahead to onsemi's upcoming quarterly earnings for updates on customer inventories, demand trends, and management's outlook for the second half of the year.
onsemi (NASDAQ: ON) shares dropped 5.8% on Monday after TD Cowen lowered its price target on the semiconductor manufacturer to $95 from $110 while maintaining a "Buy" rating.
The reduced price target reflects a more cautious near-term outlook as onsemi continues to face softer demand across its automotive and industrial end markets. While the firm remains constructive on the company's long-term prospects, the lower target suggests that a recovery in key markets may take longer than previously expected.
onsemi has been navigating a prolonged inventory correction, particularly in the automotive and industrial semiconductor segments, where customers have continued to reduce inventories amid slowing demand. Although the company remains well positioned in high-growth markets such as electric vehicles, advanced driver assistance systems (ADAS), and industrial power management, near-term revenue growth has been pressured by weaker customer orders.
Despite lowering its valuation target, TD Cowen maintained its Buy rating, indicating continued confidence in onsemi's competitive position and long-term earnings potential once industry conditions improve.
Monday's selloff suggests investors focused on the more conservative valuation outlook, adding to concerns about the pace of recovery in the analog and automotive semiconductor markets. Investors will now look ahead to onsemi's upcoming quarterly earnings for updates on customer inventories, demand trends, and management's outlook for the second half of the year.