ON Semiconductor Gets 10% Price Target Boost From This Analyst Betting On EV, SiC

Mizuho analyst Vijay Rakesh maintained ON Semiconductor Corp ON with a Buy and raised the price target from $72 to $79 after attending its SiC (silicon carbide) fab expansion event in NH.
He saw ON as well-positioned with its strong Auto/Industrial (EV, SiC, etc.) position, focus on accretive growth, and tight supply.
Firstly, ON increasing its Hudson GTAT SiC capacity 5x by YE2022 to support $4 billion committed revenue, ramping Bucheon, Korea device/ Epi facility 3x in 2023, and 2x in 2024.
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Secondly, ON's in-house SiC will likely drive profitability and supply assurance for OEM customers with the backlog.
Thirdly, ON's roadmap to 200 million in 2024 without incremental Capex.
Fourthly, ON sees a potential SiC TAM of $6.5 billion, at a 33% five-year CAGR.
Price Action: ON shares traded higher by 0.13% at $71.26 on the last check Monday.

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