Needham analyst Charles Shi has reiterated their bullish stance on ONTO stock, giving a Buy rating on November 13.
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Charles Shi has given his Buy rating due to a combination of factors including Onto Innovation’s strategic acquisition of three product lines from Semilab. This acquisition is expected to immediately enhance Onto’s market position in the specialty sector and contribute significantly to revenue growth. The company anticipates an additional $120 million in revenue and further earnings per share growth by the calendar year 2026.
Furthermore, Shi’s analysis includes a conservative forecast of Onto’s organic revenue growth in the mid-single-digit percentage range, accounting for a subdued outlook in certain capital expenditures for the first half of 2026. Despite these conservative estimates, the price target remains at $150, supported by a revised valuation multiple of 25 times the estimated non-GAAP earnings per share for 2026.
In another report released on November 13, B. Riley Securities also maintained a Buy rating on the stock with a $173.00 price target.