Onto Innovation price target raised to $175 from $150 at Stifel

Stifel raised the firm’s price target on Onto Innovation to $175 from $150 and keeps a Buy rating on the shares. While the prevailing view for Semiconductor Capital Equipment is that the worst of the downturn is now behind, expectations for growth in 2024 have also moderated, the analyst tells investors. There is little evidence that a meaningful acceleration in phone/PC unit demand is imminent, yet the firm forecasts wafer fab equipment, WFE, growth in 2024, led by memory growth and resiliency in China spending, the firm adds. Stifel anticipates 2024 to kickstart a multi-year investment upcycle and remains constructive on the semi equipment sector.