Mark Miller, an analyst from Benchmark Co., maintained the Buy rating on Onto Innovation (ONTO – Research Report). The associated price target remains the same with $190.00.
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Mark Miller’s rating is based on Onto Innovation’s anticipated recovery and growth prospects. The company expects a rebound in sales in the fourth quarter of 2025, following a trough in the third quarter, with stronger results anticipated in 2026. This optimism is driven by investments in AI servers and cloud infrastructure, as well as the introduction of new memory and gate-all-around devices.
Additionally, Onto Innovation’s memory business is projected to remain stable, with 2025 memory revenue expected to surpass that of 2024. The company is also launching new products, such as the Gen5 Dragonfly tool, which is set to enhance its market position by addressing smaller defects crucial to AI customers. Furthermore, Onto is making strategic moves to mitigate tariff impacts by shifting some manufacturing operations to Asia, which is expected to improve margins.
In another report released on June 13, B.Riley Financial also maintained a Buy rating on the stock with a $160.00 price target.