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.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Mark Miller has given his Buy rating due to a combination of factors related to Onto Innovation’s strategic acquisition and financial outlook. The company has entered into an agreement to acquire Semilab International’s materials analysis business, which is expected to significantly enhance Onto Innovation’s product offerings. This acquisition, valued at approximately $545 million, will add four complementary product lines that have shown a strong growth trajectory.
Furthermore, the acquisition is projected to be immediately beneficial to Onto Innovation’s financial performance, with expectations of increased gross and operating margins. It is anticipated to boost non-GAAP earnings per share by over 10% in the first year post-acquisition, contributing an additional $130 million in annual revenue. Additionally, Onto Innovation has reaffirmed its Q2 guidance, indicating a stable financial outlook, which supports the Buy rating recommendation.
In another report released on June 13, B.Riley Financial also maintained a Buy rating on the stock with a $160.00 price target.