Onto Innovation stock price target raised to $120 from $110 at Stifel

Investing.com - Stifel raised its price target on Onto Innovation Inc. (NYSE:ONTO) to $120.00 from $110.00 on Monday, while maintaining a Hold rating on the stock. According to InvestingPro data, analyst targets for ONTO range from $110 to $170, with the stock currently trading at $121.34 after a significant 16.5% decline over the past week.

The price target increase comes as Onto Innovation disclosed in an 8K filing on Friday that Semilab’s Enhanced Infrared Reflectometer (EIR) product line would be excluded from its previously announced acquisition of Semilab materials analysis product lines. The company, which InvestingPro analysis shows maintains a strong balance sheet with more cash than debt, continues to demonstrate solid financial health with a perfect Piotroski Score of 9.

The modification follows a second request from the Department of Justice for further review under the Hart-Scott-Rodino Antitrust Improvements Act, reducing the number of product lines being acquired from four to three.

To facilitate closure by the end of the year, Onto Innovation has amended the deal, including a reduction in purchase price to $510 million from the original amount, representing approximately a 9% decrease. The payment structure remains at 85% cash and 15% stock.

Onto Innovation now estimates that adjusted revenue from the acquired companies will be approximately $120 million, down from the previously estimated $130 million.

In other recent news, Onto Innovation Inc. announced an amendment to its acquisition agreement with Semilab USA LLC, adjusting the purchase price and excluding a portion of the target’s business. The revised terms involve a cash payment of $432.3 million and the issuance of 641,771 shares of common stock, reducing the total purchase price by approximately $50 million to around $495 million. Onto Innovation reported its financial results for the second quarter of 2025, with earnings per share (EPS) slightly missing forecasts at $1.25 compared to the expected $1.27. However, the company exceeded revenue expectations, reporting $253.6 million against a forecast of $250.49 million.

Jefferies upgraded Onto Innovation’s stock rating from Hold to Buy, raising the price target to $170.00, driven by confidence in the company’s potential to recover CoWoS market share. Meanwhile, Evercore ISI adjusted its price target for the company’s stock to $115.00 from $130.00, maintaining an Outperform rating despite a revenue pause. The reduction follows Onto Innovation’s earnings per share coming in 2% below consensus estimates due to a higher share count. These developments offer a comprehensive view of Onto Innovation’s recent strategic and financial activities.

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