Benchmark Stays Bullish on Onto Innovation (ONTO), Citing Semilab Deal

Onto Innovation Inc. (NYSE:ONTO) is one of the most oversold semiconductor stocks so far in 2025. On June 30, Benchmark Co. analyst Mark Miller reiterated a Buy rating on Onto Innovation, with an unchanged price target of $190. The key development behind this view is the company’s agreement to acquire Semilab International’s materials analysis business for about $545 million.

According to Miller, the deal will help Onto Innovation meaningfully. The acquisition brings in four high-growth product lines that complement the company’s existing portfolio and are expected to strengthen its position in the semiconductor metrology space.

A technician measuring a semiconductor material using an advanced 3D metrology system.

Importantly, the deal also appears financially prudent as it is expected to be immediately accretive. Miller notes that the transaction should immediately enhance Onto’s gross and operating margins and lift adjusted EPS by more than 10% in the first year after closing (as per the company’s estimates). The acquisition is also expected to contribute around $130 million in additional annual revenue.

Onto Innovation Inc. (NYSE:ONTO) is a semiconductor equipment and process control company that provides advanced metrology, inspection, and data analytics solutions for chip manufacturing.

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Disclosure: None. This article is originally published at Insider Monkey.