AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Onto Innovation: B. Riley Securities Downgrades to Buy, PT to $145
ByAinvest
Friday, Aug 8, 2025 9:06 am ET1min read
Onto Innovation: B. Riley Securities Downgrades to Buy, PT to $145
Onto Innovation Inc. (ONTO) received a downgrade to "Buy" from B. Riley Securities, with a new price target of $145, as reported on July 2, 2025. This move follows the company's recent earnings report for the quarter ended June 30, 2025, where adjusted earnings per share (EPS) were $1.25, slightly missing analysts' expectations of $1.27 per share. The revenue rose 4.7% to $253.6 million, also slightly above the expected $252.26 million.The downgrade reflects a shift in analysts' sentiment towards the company's growth prospects, particularly in the context of its strategic acquisition of Semilab International and the anticipated impact of tariffs. B. Riley Securities cited the company's strong progress in new product adoption and the expected accretive impact of the Semilab acquisition as key factors in their revised assessment.
Onto Innovation's Q2 2025 earnings call highlighted significant milestones in the development and validation of its next-generation Dragonfly platform, which is projected to drive a sharp acceleration in AI logic packaging revenue in the fourth quarter. The company expects a 50% quarter-over-quarter increase in AI logic packaging revenue, which would mark a substantial rebound after a slower third quarter.
Despite the downgrade, the overall sentiment remains neutral to slightly positive, with analysts focusing on the company's execution and competitive positioning. The acquisition of Semilab is expected to add over $130 million in annual revenue and improve both gross and operating margins. Management has shown increased confidence in the company's ability to navigate the fourth quarter rebound and maintain its growth trajectory.
References:
[1] https://seekingalpha.com/news/4482135-onto-innovation-anticipates-50-percent-ai-packaging-revenue-surge-in-q4-2025-while-advancing
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3U00SP:0-onto-innovation-inc-reports-results-for-the-quarter-ended-june-30-earnings-summary/
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments

No comments yet