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Onto Innovation: Strong Buy Rating Backed by Promising Future Prospects and Projected Growth

Onto Innovation: Strong Buy Rating Backed by Promising Future Prospects and Projected Growth

Onto Innovation (ONTOResearch Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Charles Shi from Needham reiterated a Buy rating on the stock and has a $230.00 price target.

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Charles Shi has given his Buy rating due to a combination of factors reflecting Onto Innovation’s promising future prospects. The company has shown stable performance with its recent quarterly results aligning with expectations. Notably, the emergence of new NAND orders and increased strength in High Bandwidth Memory (HBM) markets are anticipated to bolster the company’s outlook for 2025, particularly in the latter half of the year.
Despite some concerns over weakening wafer fab equipment (WFE) outlook affecting consensus estimates, the current report is seen as a positive turning point. The adjustments in 2025 estimates are likely to be minor, offering a clearer view of Onto’s growth trajectory. This renewed confidence in the company’s ability to achieve a projected 12% year-over-year growth underpins the Buy recommendation.

According to TipRanks, Shi is a 4-star analyst with an average return of 6.0% and a 47.06% success rate. Shi covers the Technology sector, focusing on stocks such as KLA, Kulicke & Soffa, and Applied Materials.

In another report released on February 5, Evercore ISI also maintained a Buy rating on the stock with a $250.00 price target.

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