Buy Rating Backed by Secular Growth and Margin Recovery Potential Supporting Raised $75 Target

Tip Ranks
2026.02.10 03:45
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Analyst Joshua Buchalter from TD Cowen has maintained a Buy rating on ON Semiconductor, raising the price target from $70 to $75. He cites consistent demand and potential margin recovery as key factors, despite recent guidance falling short of expectations. Buchalter emphasizes strong growth in automotive, industrial, and AI data center markets, and believes that if management can restore gross margins, the company is positioned for earnings re-acceleration. Roth MKM also supports a Buy rating with a $70 target.

Analyst Joshua Buchalter from TD Cowen maintained a Buy rating on ON Semiconductor and increased the price target to $75.00 from $70.00.

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Joshua Buchalter has given his Buy rating due to a combination of factors, including a demand environment that remains broadly consistent with prior quarters and peers, even though the latest guidance came in below what many expected. He acknowledges that investors are waiting for clearer evidence of margin improvement, but he views the current situation as a phase of gradual recovery rather than structural deterioration.

At the same time, he highlights strengthening secular drivers in automotive, industrial, and AI data center markets, with particular note of fast-growing DC power revenues and expanding design wins across multiple power and sensing applications. In his view, if management can execute on restoring gross margins as volumes recover, the company is well positioned to re-accelerate earnings, supporting his raised $75 price target and continued Buy recommendation.

According to TipRanks, Buchalter is a 5-star analyst with an average return of 18.4% and a 60.63% success rate. Buchalter covers the Technology sector, focusing on stocks such as Advanced Micro Devices, STMicroelectronics, and Texas Instruments.

In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $70.00 price target.

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