Onto Innovation: Benchmark maintains Buy, PT down to $160 from $190

Onto Innovation: Benchmark maintains Buy, PT down to $160 from $190

Onto Innovation Inc. (ONTO) has seen a significant adjustment in its analyst ratings and price targets, with the investment research firm Benchmark maintaining its "Buy" rating but lowering its price target from $190 to $160. This move comes amidst the anticipation of the company's upcoming earnings report, scheduled for August 7, 2025.

Analysts at Benchmark have adjusted their expectations based on the company's recent financial performance and market conditions. Despite the downward revision in the price target, the firm remains bullish on Onto Innovation's long-term prospects, highlighting the company's strategic position in the microelectronics market.

Historically, Onto Innovation has demonstrated strong earnings performance, with a recent quarterly earnings per share (EPS) of $1.27, which missed the Zacks Consensus Estimate by 1.6% [2]. The company's revenue growth has been robust, with a 5% year-over-year increase in the second quarter of 2025, driven by expansions in advanced nodes and AI-packaging [2]. However, the company's stock has been volatile, with a 48.58% decline over the last 52 weeks [1].

The downward adjustment in the price target reflects a more cautious outlook on the company's near-term performance and potential risks. Analysts have noted the impact of inbound tariffs and the pending acquisition of certain product lines from Semilab, which may affect the company's financials in the near term. Despite these challenges, Onto Innovation's strong fundamentals, including its high return on equity and efficient cost management, continue to support its long-term growth prospects.

Investors should closely monitor Onto Innovation's earnings report and subsequent guidance to assess the impact of these factors on the company's financial performance and stock price. The company's ability to navigate these challenges and maintain its competitive position in the market will be crucial for its long-term success.

References:

[1] https://www.benzinga.com/insights/earnings/25/08/46910607/examining-the-future-onto-innovations-earnings-outlook

[2] https://www.nasdaq.com/articles/innovations-q2-earnings-miss-estimates-top-line-5-y-y