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Investing.com - Evercore ISI has raised its price target on Onto Innovation Inc. (NYSE:ONTO) to $160.00 from $115.00 while maintaining an Outperform rating on the semiconductor equipment company’s stock. Currently trading at $129.50, ONTO is approaching its earnings report on November 6, with analyst targets ranging from $115 to $180, according to InvestingPro data.
The firm cited Onto Innovation’s favorable position to benefit from re-acceleration in memory and High Bandwidth Memory (HBM) spending as key factors behind the increased target. Evercore noted the company currently trades at 24 times next-twelve-month earnings, which is 20% below its three-year average on an absolute basis. InvestingPro data shows ONTO’s current P/E ratio at 32.35, with a perfect Piotroski Score of 9, indicating excellent financial strength.
Evercore expects momentum in Onto’s advanced packaging revenues related to its Film and Line products to drive quarterly growth. The firm projects a 19% quarter-over-quarter increase for December, slightly above the Street consensus of 18%.
The research firm believes both its own 2026 revenue growth estimate of 6% and the Street’s 9% projection may be conservative, particularly given recent strength in HBM markets highlighted by industry peers Lam Research and KLA Corporation.
Evercore’s new $160 price target assumes a price-to-earnings multiple of 25 times on the firm’s projected 2027 earnings power of $7 per share, with analysts expecting Onto’s P/E multiple to expand as the company posts potential upside surprises amid accelerating memory spending.
In other recent news, Onto Innovation Inc. announced an amendment to its acquisition agreement with Semilab USA, reducing the purchase price by approximately $50 million and excluding the Enhanced Infrared Reflectometer product line from the transaction. This adjustment brings the total purchase price to about $495 million. Jefferies upgraded Onto Innovation’s stock rating from Hold to Buy, citing confidence in the company’s ability to regain market share in the Chip-on-Wafer-on-Substrate sector. Additionally, Oppenheimer raised its price target for Onto Innovation to $180, maintaining an Outperform rating, while Stifel increased its price target to $120, keeping a Hold rating. Meanwhile, Evercore ISI lowered its price target to $115 due to Onto Innovation’s recent earnings per share falling 2% below consensus estimates. These developments reflect ongoing adjustments and evaluations by analysts regarding Onto Innovation’s strategic moves and financial performance.
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