Onto Innovation upgraded to Buy from Hold at Jefferies

Jefferies upgraded Onto Innovation (ONTO) to Buy from Hold with a price target of $170, up from $100. The tells investors to look past the company’s near term “hurdles” as its growth will reaccelerate in the second half of 2026. After hosting meetings with management, Jefferies has renewed confidence in Onto’s ability to regain lost chip-on-wafer-on-substrate share. The company’s revenue will bottom in Q1 before reaccelerating in the back half of next year, the analyst tells investors in a research note. Jefferies believes Onto’s accelerator builds should continue pushing higher while memory is tightening, offering incremental opportunity.