2024-03-13 14:00:00 ET
Summary
- ON Semiconductor's offerings remain in demand, as observed in the consistent gross margins and stable multi-year long-term supply agreements.
- While electrification may have been temporarily delayed, readers may look forward to new growth opportunities with hybrid vehicles already gaining traction, as similarly reported by Ford.
- For now, we expect EV and industrial demand weakness to continue for a little longer, with ON's intermediate-term performance likely to disappoint.
- With the stock currently undervalued, we believe that there is an attractive upside potential of over +30% for investors with a long-term investing trajectory.
We previously covered ON Semiconductor Corporation ( ON ) in December 2023, discussing the stock's painful correction after the management offered an underwhelming FQ4'23 guidance....
Read the full article on Seeking Alpha
For further details see:
ON Semiconductor: A Compelling Undervalued Buy For Patient Investors