-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We up our 12-month target to $110 from $75, on a P/E of about 26x our 2027 EPS view of $4.28, above peers/historical to reflect growth opportunities and margin expansion. We raise our EPS estimate for 2026 to $3.04 from $2.92 and keep 2027 at $4.28. We believe that ON is strategically positioned to capitalize on growth in AI infrastructure, with solutions spanning the entire power tree from grid to processor, as the shift to higher-voltage architectures increases content per server rack. In automotive, ON is capturing demand in cost-optimized vehicles with its Treo platform. We believe its diversified exposure to AI-driven growth extends beyond data centers, as immense power demands create a "halo effect" driving adjacent markets like energy storage systems and microgrids. We see a path to achieving a long-term gross margin over 50% (high-30% in Q1), supported by improving factory utilization (77% in Q1) and product mix from new technologies like Treo. However, at current multiples we see valuation as full.