10:28 AM EDT, 04/11/2025 (MT Newswires) -- Onto Innovation ( ONTO ) could see financial results fall below consensus as part of a broader reset in semiconductor capital equipment, but its long-term growth drivers remain intact, Oppenheimer said in a note Friday.

The firm cut its 2025 revenue and earnings estimates for Onto by 4% and 10%, respectively, and slashed 2026 estimates by 19% and 25%.

The reduction reflects worsening macro conditions, policy missteps, and demand retrenchment after years of expansion in wafer fab equipment, Oppenheimer said.

Still, Onto's strong position in AI packaging, minimal exposure to China, and $852 million in net cash support a long-term growth story, the firm added.

Onto is seen as a pick for "patient investors willing to ride near-term turbulence." according to the note.

Oppenheimer reaffirmed the company's stock rating at outperform and lowered the price target to $150 from $240.

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