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Investing.com - Oppenheimer raised its price target on Onto Innovation Inc. (NYSE:ONTO) to $180.00 from $130.00 on Tuesday, while maintaining an Outperform rating on the semiconductor equipment maker. According to InvestingPro data, the company boasts a perfect Piotroski Score of 9, indicating strong financial health, with analyst targets currently ranging from $110 to $170.
The research firm cited Onto’s amendment to its proposed Semilab assets acquisition, which removes the EIR (Fourier-transform infrared spectroscopy reflectometry) product and reduces the deal price by 10%. Oppenheimer described this as a "smart, pragmatic adjustment" that avoids regulatory delays while preserving the core strategic rationale. The company’s strong balance sheet, with more cash than debt and a current ratio of 9.59x, positions it well for strategic acquisitions.
Onto Innovation management reaffirmed its guidance for the third quarter of 2025, according to Oppenheimer’s research note.
The new price target represents approximately 29 times Oppenheimer’s 2026 earnings per share estimate, which stands 9% above current consensus expectations. The firm noted this multiple aligns with peer valuations, with KLA Corporation trading at 27 times earnings and Camtek at 32 times.
Oppenheimer positioned Onto as one of its top "under-the-radar" plays in the AI infrastructure space, highlighting the company’s tools that help maximize yields for artificial intelligence chips.
In other recent news, Onto Innovation Inc. reported its financial results for the second quarter of 2025, showing a slight miss on earnings per share (EPS) at $1.25, just below the forecast of $1.27. Despite this, the company’s revenue exceeded expectations, reaching $253.6 million compared to the forecast of $250.49 million. Onto Innovation also announced an amendment to its acquisition agreement with Semilab USA LLC, reducing the purchase price by approximately $50 million and excluding certain business lines from the transaction. The revised terms involve a payment of $432.3 million in cash and the issuance of 641,771 shares of common stock to Semilab International Zrt.
In analyst updates, Stifel raised its price target on Onto Innovation to $120 while maintaining a Hold rating, following the company’s disclosure that Semilab’s Enhanced Infrared Reflectometer product line would be excluded from the acquisition. Jefferies upgraded Onto Innovation from Hold to Buy and increased its price target to $170, expressing confidence in the company’s ability to regain market share in the CoWoS sector. Meanwhile, Evercore ISI lowered its price target to $115, citing Onto Innovation’s June quarter EPS coming in 2% below consensus estimates due to a higher share count. These developments reflect various analyst perspectives and adjustments in response to the company’s recent performance and strategic moves.
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