Morgan Stanley Lifts PT on ON Semiconductor (ON) Stock

Core Insights - ON Semiconductor Corporation is identified as one of the top semiconductor stocks to consider for investment leading into 2026, with a price target increase from $55 to $56 by Morgan Stanley while maintaining an "Equal Weight" rating [1][2] Financial Performance - The company's revenue for the quarters ending October 3, 2025, and September 27, 2024, was reported at $1.5 billion and $1.76 billion respectively, indicating a 12% year-over-year decline, with revenue from PSG decreasing approximately 11% year-over-year [4] - The diluted EPS for Q3 2025 was $0.63, an increase from $0.41 in Q2 FY 2025, reflecting signs of stabilization in core markets and positive growth in AI [5] Asset Management - ON Semiconductor's management has approved the recognition of additional pre-tax non-cash impairment and accelerated depreciation charges ranging from $200 million to $300 million, primarily related to long-lived assets in manufacturing facilities [2] - These charges are expected to reduce the company's recurring depreciation expense by an estimated $10 million to $15 million in 2026, likely linked to its Silicon Carbide manufacturing assets [3]