Piper Sandler analyst Harsh V. Kumar had an Overweight rating on ON Semiconductor Corp (NASDAQ: ON) with a price target of $135.
After recently meeting the management, Kumar reaffirmed that the company is still on track to execute well despite macro weakness impacting the industrial end market.
ON has the potential to avoid much of this weakness due to its strong positions in both Silicon Carbide (SiC) and the general growth of its other automotive products, such as LEDs and CMOS sensors.
ON has roughly $20 billion in long-term supply agreements, $11 billion of which are related to silicon carbide (SiC) products, and most of the LTSAs are typically 4 to 5 years long, with some extending to 2x the average length offering ...