Onto Innovation downgraded to Hold from Buy at Jefferies

Jefferies analyst Blayne Curtis downgraded Onto Innovation (ONTO) to Hold from Buy with a price target of $110, down from $135. The firm believes the drivers of the artificial intelligence packaging correction are likely to extend through 2026, leaving Onto’s 2027 as a “show-me story based upon regaining share.” The company’s path to return to double-digit growth is “anything but certain” with risk that the chip-on-wafer-on-substrate opportunity is permanently impaired, the analyst tells investors in a research note.