Sell ON Semiconductor Stock, Analysts Say. Demand Challenges Could Be Ahead.

BNP Paribas analysts David O’Connor and Jerome Ramel cut their rating on the semiconductor company to Underperform from Neutral and slashed their price target to $55 from $74. Shares of ON—which is a key supplier of semiconductors to the auto industry—were down 2.8% to $61.20 in premarket trading Friday, while futures tracking the were flat. Last year, ON missed its 2023 target of $1 billion for silicon carbide chips (SiC), and in January lowered its target for this year, BNP analysts wrote.