Loop Capital analyst David Williams downgraded ON Semiconductor to Hold from Buy with a price target of $20, down from $25 after its Q4 earnings miss. The analyst says the company had a "messy" quarter with margin progress disrupted by "multiple unforeseen factors", though he still sees the magnitude of the shortfall as surprising. Williams adds that while he is encouraged that ON Semi management is taking actions to address the issues, he would have expected them to be more proactive in avoiding the challenges or at least telegraphing the pressure to the Street.

Evercore ISI initiated coverage of ON Semiconductor with an Outperform rating and $104 price target. The firm calls ON a "Tectonic Shift play" as a key supplier into the emerging IoT market, which the firm expects to grow to tens of billions of units. The firm believes ON will remain a market leader in high-growth silicon carbide and will generate robust free cash flow while expanding its operating margins by 1,300 basis points over the next five years, the analyst tells investors.