ON Semiconductor (NASDAQ:ON) shares gained 5% on Monday after Citi raised its price target on the chipmaker and placed the stock on its Upside Catalyst Watch list ahead of the company’s Analyst Day in September.
The move reflects growing optimism around ON Semiconductor’s exposure to data centre power infrastructure and its long-term growth opportunities in advanced power technologies
Citi Raises Target Price to $120 Citi increased its price target on ON Semiconductor to $120 from $100 while maintaining its Neutral rating on the stock. The revised target is based on a valuation of 20 times projected 2028 earnings, above the company’s three-year average multiple of 17 times. According to the bank, the higher valuation reflects increasing confidence in the company’s ability to benefit from rising demand for power solutions in data centres.
Earnings Forecasts Revised Higher The brokerage also lifted its earnings per share estimates for calendar years 2026, 2027 and 2028. Citi now expects earnings of $3.07 per share in 2026, $4.64 in 2027 and $6.00 in 2028, representing increases of 1%, 12% and 9%, respectively, compared with previous forecasts. The revisions were driven by expectations for higher pricing and a longer-lasting recovery across the analogue semiconductor market.