Wells Fargo Adjusts ON Semiconductor Price Target to $100 From $85, Maintains Overweight Rating

Wells Fargo downgraded Synaptics (SYNA) to Equal-weight from Overweight after onsemi (ON) amended their merger agreement. The revised deal values Synaptics at $123 per share, totaling approximately $5.7 billion in cash. According to the updated terms, the acquisition will proceed with a reduced price but remains subject to shareholder and regulatory approvals.

ON Semiconductor (NASDAQ:ON) shares rose over 7% after revising its merger deal with Synaptics (NASDAQ:SYNA). The company will acquire Synaptics for $123 per share, valuing the deal at $5.7B. ON expects immediate adjusted EPS accretion and additional synergies. The deal is subject to shareholder and regulatory approvals, with a target close by mid-2027. ON's stock is trading at $85.96, up 18.1% from its 20-day SMA.

On Semiconductor (ON) raised its bid for Synaptics (SYNA) to $5.7B in cash, up from a $7B all-stock deal. ON stock rose 8% to $86.64, while SYNA surged 14% to $121.32. The cash deal avoids dilution for ON and provides certainty for SYNA shareholders. ON expects the deal to be immediately accretive to earnings, funded by cash and debt.

Stifel kept a Hold rating and $75 target on ON Semiconductor (NASDAQ:ON) after its merger terms with Synaptics changed. ON will now buy Synaptics for $123 per share in cash, valuing the deal at $5.7B. Both companies' shares rose post-announcement. ON's stock is up 64% in a year, with 23 analysts raising earnings forecasts. Other analysts adjusted targets, citing valuation changes.

Nike shares fell 10% after missing revenue estimates and announcing layoffs. ON Semiconductor (ON) and Synaptics (SYNA) rose 7% and 14% respectively due to a $5.7B acquisition deal. Nexalin Technology (NXL) dropped 18% after a distribution deal. Vylor (VYLR) gained after being added to the S&P 500. Seagate (STX) and Western Digital (WDC) fell 11% and 8% on Toshiba's HDD expansion plans.

ON Semiconductor (ON) shares rose 6.5% in pre-market trading after revising its acquisition terms for Synaptics (SYNA) to an all-cash deal at $123 per share, valuing it at $5.7 billion. The revised deal is expected to be immediately accretive to ON's non-GAAP earnings per share, with potential additional benefits. ON plans to finance the acquisition using cash and debt. Baird maintained a Hold rating on ON with a $108 price target.