Wells Fargo reduced its price target for ON Semiconductor to $95 from $110, citing valuation concerns following a 40% drop in the chipmaker’s stock since its acquisition of Synaptics was announced.
The bank maintained its 2030 compound annual growth rate (CAGR) targets for ON Semiconductor, forecasting revenue growth between 11% and 13% alongside earnings per share in the range of $9 to $11. The stock last traded at $72.34, below InvestingPro’s fair value estimate, according to the note.
Bernstein SocGen Group and Truist Securities also trimmed their price targets for ON Semiconductor. Bernstein lowered its target to $62 from $70, while Truist reduced its estimate to $91 from $101. The chipmaker’s shares have underperformed the SOX index, which has declined 15% over the same period.
ON Semiconductor is scheduled to host an analyst day on September 16, where management may address market concerns. The company received early termination of the Hart-Scott-Rodino waiting period for its proposed merger with Synaptics, enabling it to proceed with integrating Synaptics into its subsidiary, Sonic Acquisition Corp.
Separately, Goldman Sachs cut its price target for On Holding to $42 from $46 after the company reported second-quarter 2026 results that missed expectations. Adjusted EBITDA reached CHF 168.1 million, while net sales totaled CHF 850.3 million, a 13.5% year-over-year increase but below the consensus forecast of CHF 880 million.
Truist also adjusted its 2027 earnings per share estimate for ON Semiconductor to $4.35, reflecting ongoing adjustments in valuation amid broader sector volatility.
