Goldman Sachs initiated coverage on Onto Innovation Inc. (ONTO) with a Buy rating. Analyst James Schneider established a price target of $400.00, suggesting significant upside from the previous close.
Surging demand for artificial intelligence is driving growth in the inspection and metrology equipment sector. Increasing semiconductor design complexity and 3D integration trends are intensifying the requirement for manufacturing process controls.
Goldman Sachs expects Onto Innovation to capture market share via its new Dragonfly G5 and Atlas G6 platforms. The bank forecasts the company will outperform the broader wafer fabrication equipment market through 2028. Analysts also anticipate margin expansion as the company follows a trend of recent price target hikes from other firms.