Onto Innovation price target raised to $275 from $260 at Oppenheimer

Oppenheimer raised the firm’s price target on Onto Innovation to $275 from $260 and keeps an Outperform rating on the shares. Following the firm’s visit to Onto’s HQ for the PACE facility ribbon-cutting, Oppenheimer has increased confidence in long-term AI demand for Dragonfly systems, and raised its 2025 revenue estimate by 1% to $1.19B, now 3% above consensus, and 2025 operating income also by 1% to $382.5M, which is 9% above consensus. However, the firm maintains 2024 estimates in line with consensus, which are partly constrained near-term by customers bottlenecked by space and muddied macro cross currents impacting traditional end-markets outside of AI. Onto remains Oppenheimer’s top pick.