Citi analyst Christopher Danely expects aggregate Semiconductor consensus estimates to increase during earnings season for the first time since Q3 of 2019, driven by a combination of improving demand and conservative guidance. Channel inventory is low and inventory replenishment should occur in 2020, driving the next phase of upside for Semi stocks, Danely tells investors in a research note. The analyst remains positive on the group and is Buy rated on Texas Instruments (TXN), Microchip (MCHP), Broadcom (AVGO) and ON Semiconductor (ON). His top picks are Texas Instruments and Microchip. Danely remains cautious on Xilinx (XLNX) saying its "ASIC transition will stunt revenue growth."

Exane BNP Paribas analyst David O'Connor downgraded On Semiconductor to Underperform from Neutral with a price target of $55, down from $74. The analyst has "grown more cautious" about end demand for silicon carbide, especially among U.S. suppliers. News of a potential cancellation of a low-end Tesla (TSLA) electric vehicle may make On's silicon carbide forecasts "more difficult to reach," the analyst tells investors in a research note. -

Exane BNP Paribas analyst David O'Connor downgraded ON Semiconductor to Underperform from Neutral with a $55 price target.