Onto Innovation price target lowered to $150 from $230 at Needham

Needham lowered the firm’s price target on Onto Innovation (ONTO) to $150 from $230 and keeps a Buy rating on the shares. The price target cut follows a “disappointing quarter” that included the official announcement of 2.5D share loss to KLA Corporation (KLAC). While the firm believe IRIS share gains this year “should fully offset the 2.5D share loss,” a possibly temporary reduction in AI packaging share “could mean the rapid de-rating of Onto over the past three months is unlikely to reverse in the near term.”