Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Jefferies upgraded Onto Innovation Inc. (NYSE:ONTO) from Hold to Buy and raised its price target to $170.00 from $100.00 on Tuesday. The stock, currently trading at $130.12, has shown strong momentum with a 7.91% gain over the past week. According to InvestingPro, the company maintains a "GREAT" financial health score of 3.17.
The upgrade follows Jefferies’ renewed confidence in Onto Innovation’s ability to regain lost CoWoS (Chip-on-Wafer-on-Substrate) market share, based on meetings with the company’s management last week.
Jefferies expects Onto Innovation’s revenue to reach its lowest point in the first quarter of 2026 before rebounding in the second half of that year.
The research firm noted that accelerator builds should continue to increase, while the memory market is tightening, which could provide additional opportunities for Onto Innovation after navigating near-term challenges.
Jefferies raised its earnings per share estimates for Onto Innovation to $5.55 for calendar year 2026 and $7.08 for 2027, with the new price target based on 24 times the projected 2027 EPS. The stock currently trades at a P/E ratio of 32.19, with analyst targets ranging from $90 to $160.
In other recent news, Onto Innovation Inc. reported its financial results for the second quarter of 2025, revealing a slight miss on earnings per share but a revenue beat. The company’s EPS came in at $1.25, slightly below the forecast of $1.27, resulting in a negative surprise of 1.57%. However, revenue surpassed expectations, reaching $253.6 million compared to the forecast of $250.49 million, marking a 1.24% surprise. In response to these results, Evercore ISI adjusted its price target for Onto Innovation, lowering it to $115 from $130, while maintaining an Outperform rating on the stock. The adjustment was attributed to the company’s earnings per share coming in 2% below consensus estimates due to a higher share count. These developments reflect Onto Innovation’s current financial standing and analyst perspectives.
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