BUZZ-Jefferies downgrades Onto Innovation, says return to growth will be tougher

Reuters
05-20
BUZZ-Jefferies downgrades Onto Innovation, says return to growth will be tougher

** Shares of semiconductor equipment maker Onto Innovation ONTO.N falls ~2% to $98.49 in premarket trading

** Jefferies cuts to "hold" from "buy" and trims PT to $110 from $135

** Brokerage says the drivers of AI packaging correction are likely to extend through 2026

** 2027 will be a "show-me story" based upon regaining share - Jefferies** Earlier this month, co forecast Q2 revenue in the range of $240 million-$260 million vs estimates of $263.7 mln, and Q2 adj. EPS between $1.21 and $1.35 vs estimates of $1.46 - LSEG

** Eight of 10 brokerages rate the stock "buy" or higher, and two "hold"; their median PT is $155 - LSEG

** Up to last close, stock fell ~40% YTD

(Reporting by Joel Jose in Bengaluru)

((joeljose@thomsonreuters.com;))

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