In a report released today, Brian Chin from Stifel Nicolaus downgraded Onto Innovation (ONTO – Research Report) to a Hold, with a price target of $117.00.
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Brian Chin has given his Hold rating due to a combination of factors affecting Onto Innovation. The company’s recent earnings report showed mixed results, with strong performance in advanced nodes revenue, which nearly doubled quarter-over-quarter, indicating a promising recovery in this segment. However, the outlook for the second quarter suggests a decline in revenue and earnings, falling short of expectations.
On the downside, the advanced packaging segment is facing increased competition, particularly from KLA, leading to a lower revenue baseline than anticipated. This competitive pressure has prompted a downward revision of estimates for the latter half of 2025 and the full year 2026. While Onto Innovation is advancing its next-generation inspection platform, the stock is expected to remain range-bound as the company works to stabilize its market share in advanced packaging. Consequently, the price target has been adjusted to $117, reflecting these challenges.
Chin covers the Technology sector, focusing on stocks such as Lam Research, Onto Innovation, and Applied Materials. According to TipRanks, Chin has an average return of 11.2% and a 51.52% success rate on recommended stocks.
In another report released on May 3, Cantor Fitzgerald also downgraded the stock to a Hold with a $135.00 price target.
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