Stock Price & Analysis

Based on the analysis of ONTO's stock performance and market trends, it is recommended to buy ONTO stock as it is currently undervalued with strong growth prospects. However, exercise caution due to short-term market volatility.

Price Prediction for ONTO Stock in 2025

Based on current trends and analysis, here is the price prediction for ONTO stock in 2025:

1. High Price Target: $247.00 - This reflects the average analyst consensus and strong growth prospects driven by AI packaging and advanced nodes.
2. Low Price Target: $180.00 - Considering potential market volatility and risks such as muted HBM demand.
3. Base Case: $210.00 - A realistic target considering current momentum and analyst expectations.

The stock is expected to benefit from its leadership in metrology and inspection tools, with a positive outlook for 2025.

The S1 support level for ONTO Stock is $124.37 ,The R1 resistant level for ONTO Stock is $150.62.

As of the end of day on 2025-03-13, the price of ONTO Stock was $133.35.

The target price for ONTO Stock according to analyst rating is 241.67, with the highest price target at 250.00 and the lowest at 230.00. Analysts have a Strong Buy rating on ONTO Stock overall.

The market cap of ONTO is $6.6B.

Analysis and Insights

Valuation Metrics:

ONTO's valuation metrics indicate potential overvaluation. The stock has a high P/E ratio of 64.47 and an EV/EBITDA of 40.03, suggesting investors are pricing in significant future growth. The P/S ratio of 10.59 further supports this, as it reflects a premium relative to its revenue.

Financial Performance:

ONTO has shown strong revenue growth, with Q4 revenue reaching $263.94 million, up from $228.85 million in Q1. Net income has also grown steadily, though the high valuation multiples may not be fully justified by current profitability levels.

Technical Analysis:

The stock's RSI is at 14.51, indicating it's oversold. This could signal a potential short-term rebound, but the overall trend remains bearish due to recent declines.

Analyst Sentiment:

Analysts maintain a Strong Buy rating with a target price of $247, suggesting confidence in ONTO's future. However, the stock's recent drop after earnings indicates some skepticism among investors.

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Conclusion:

ONTO appears overvalued based on its high valuation multiples and recent price volatility. While strong revenue growth and analyst optimism are positives, investors should exercise caution due to the risks associated with high multiples.

Onto Innovation Inc. is engaged in the design, development, manufacture and support of metrology and inspection tools for the semiconductor industry. The Company’s products include Automated Metrology Systems; Integrated Metrology Systems; Silicon Wafer All-surface Inspection/Characterization; Macro Defect Inspection; Automated Defect Classification and Pattern Analysis; Yield Analysis; Opaque Film Metrology, and others. Its products are primarily used by silicon wafer manufacturers, semiconductor integrated circuit fabricators, and advanced packaging manufacturers operating in the semiconductor market. Its products are also used for process control in a number of other specialty device manufacturing markets, including light emitting diodes, vertical-cavity surface-emitting lasers, micro-electromechanical systems, CMOS image sensors, silicon and compound semiconductor power devices, analog devices, RF filters, data storage, and certain industrial and scientific applications.

The price prediction for ONTO stock by 2030 is expected to reach $247, driven by strong growth in AI packaging and advanced nodes. ONTO's record revenue and expanding customer base support this target.

ONTO has a total of 1497 employees.