BofA analyst Vivek Arya double downgraded ON Semiconductor, to Underperform from Buy, after the company's Q4 results and outlook commentary confirmed his views on a recovery in autos and content growth tailwinds in electric vehicles and ADAS but also came with the "negative surprise" of gross margin weakness. While he finds it harder to justify multiple expansion until gross margins and free cash flow start to improve more sustainably, Arya also thinks the company's first quarter outlook does not reflect the kind of China disruption that could potentially show up later in the year. Arya reduced his price target on ON Semi shares to $20 from $29.

BofA raised the firm's price target on Texas Instruments (TXN) to $190 from $175 and keeps a Neutral rating on the shares. TI's small Q1 beat and inline but sequentially rising Q2 sales guidance, "while modest, potentially marks a recovery inflection in industrial chip demand," with positive read-across for U.S. peers such as Analog Devices (ADI), Microchip (MCHP), NXP Semiconductors (NXPI) and On Semiconductor (ON), the analyst tells investors. However, despite an expected recovery, TI's sustained high capex intensity could keep reported calendar year 2024-26 pro-forma EPS below $6 per share, the analyst added.

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Wells Fargo lowered the firm's price target on On Semiconductor (ON) to $95 from $110 and keeps an Overweight rating on the shares ahead of quarterly results. The firm anticipates On to deliver a Q2 guide slightly below expectations as it adjusts to Tesla-specific (TSLA) production softness specific to image sensor and SiC sales.