We Think Investors Have an Attractive Entry Point for Onsemi After a Strong Q1 Holds Our Belief

Onsemi’s strong first-quarter results reaffirmed our confidence in management’s long-term vision for realigning the company toward stronger growth and profitability. We maintain our $67 per share fair value estimate and think shares look like a bargain for this narrow-moat company. We think the firm’s focus on differentiated solutions for electric vehicles, autonomous vehicles, and renewable energy infrastructure is being rewarded on the top and bottom lines. We continue to be impressed with management’s ability to extract higher profits from Onsemi, and we also think investment in silicon carbide, while already reaping results, will pave long-term growth.