Onto Innovation price target raised to $350 from $265 at Oppenheimer

Oppenheimer analyst Edward Yang raised the firm’s price target on Onto Innovation (ONTO) to $350 from $265 and keeps an Outperform rating on the shares. The firm believes the market is significantly underreacting to Onto’s positive Q1 preannouncement and its flagship Dragonfly G5 platform achieving critical qualification for 2.5D advanced packaging applications, with initial shipments expected in June. While customers were not disclosed, the win is likely with TSMC (TSM), says Oppenheimer, which was always a plus or minus 20% reaction event vs. initial 3% move. The sedate response likely reflects timing, technicals, and lack of specificity into ultimate CoWoS share, Oppenheimer adds. In the firm’s view, this creates an attractive buying opportunity.