By Emily Dattilo
ON Semiconductor stock fell Friday after a Wall Street team downgraded the stock, flagging demand concerns.
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. The team also pulled back their earnings per-share estimates through 2027 in a Friday report.
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 S&P 500 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.
"We initially expected there could be a catch-up ahead given the strength of demand, but...have grown more cautious about end demand for SiC, especially among U.S. suppliers," they said.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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(END) Dow Jones Newswires
April 19, 2024 10:05 ET (14:05 GMT)
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