Evercore ISI lowers Onto Innovation stock price target to $115 on revenue pause

Published 08/08/2025, 11:20
Evercore ISI lowers Onto Innovation stock price target to $115 on revenue pause

Investing.com - Evercore ISI has lowered its price target on Onto Innovation Inc. (NYSE:ONTO) to $115.00 from $130.00 while maintaining an Outperform rating on the semiconductor equipment maker’s stock. According to InvestingPro data, analyst targets for the stock range from $90 to $190, with the company currently trading significantly below its Fair Value.

The price target reduction follows Onto Innovation’s June quarter earnings per share coming in 2% below consensus estimates due to a higher share count, according to Evercore ISI.

The research firm noted that Onto’s September quarter revenue and EPS guidance were 3% and 18% below consensus, respectively, driven by a pause in advanced node revenues.

Despite these misses, Evercore ISI pointed out that Onto Innovation’s shares traded flat in after-hours trading as revenues are expected to reach their lowest point in the September quarter before rebounding in the December quarter, driven by acceleration in advanced packaging revenues.

Evercore ISI expects Onto Innovation to underperform wafer fabrication equipment growth with approximately 1% year-over-year revenue growth in 2025, while maintaining its Outperform rating based on longer-term secular trends in gate-all-around architecture and advanced packaging.

In other recent news, Onto Innovation Inc. released its financial results for the second quarter of 2025, revealing a mixed performance. The company reported earnings per share (EPS) of $1.25, which fell slightly short of the forecasted $1.27, resulting in a 1.57% negative surprise. Despite the EPS miss, Onto Innovation managed to surpass revenue expectations with a total of $253.6 million, compared to the anticipated $250.49 million, marking a 1.24% positive surprise. These results indicate a robust revenue performance, even as the EPS did not meet projections. The earnings announcement was followed by a rise in Onto Innovation’s stock during after-hours trading. This development reflects the market’s reaction to the company’s revenue strength. Investors will be watching closely for any further updates or analyst opinions.

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