FINWIRES · TerminalLIVE
FINWIRES

Onto Innovation's Recent Pullback Creates Buying Opportunity, Oppenheimer Says

By

Onto Innovation's (ONTO) recent 15% pullback, largely driven by convertible-related hedging, created an attractive entry point based on increased confidence in the company's fundamental upside, Oppenheimer said in a note Monday.

In a recent management meeting, the tone was positive and confident against high buy-side expectations as management reiterated its expectation to outgrow the wafer fabrication equipment market in 2027 and remained upbeat on Dragonfly G5 AI platform growth, particularly in 2027, according to the note.

The Rigaku deal and convertible notes offering are expected to mostly offset each other's impact on 2026 earnings per share, but the deal has strong long-term strategic and financial benefits, Oppenheimer said.

The brokerage also highlighted that Atlas G6 is gaining GAA/DRAM/TSV traction, 3Di benefits from shrinking bumps, JetStep/Firefly panel packaging ramps at two AI suppliers, Rigaku adds longer-term X-ray/optical hybrid metrology upside, and Dragonfly G5 2.5D logic qualification removes Onto's largest valuation overhang.

Oppenheimer kept an outperform rating on Onto Innovation with a price target of $370.

Shares of Onto Innovation were down more than 2% in Monday trading.

Price: $251.48, Change: $-6.76, Percent Change: -2.62%

Related Articles

Wire

Wise Cooperating With Brussels Prosecutor Amid Money Laundering Control Concerns; Shares Fall

Wise Group (WSE) said Monday it is cooperating with the Brussels prosecutor's office following press reports that the UK money transfer company is being probed over its compliance with anti-money laundering legislation."We are currently working with the Brussels prosecutor to respond to queries about our business, as we routinely do with regulators and law-enforcement authorities," Wise said in a filing with the Securities and Exchange Commission."No specific findings have been shared with us to date," the company said, adding that such law enforcement requests are routine and do not necessarily indicate wrongdoing.Wise shares were down by more than 12% in Monday trading.Price: $11.44, Change: $-1.33, Percent Change: -10.42%

$WSE
Wire

HawkEye 360 Seen Benefiting From Scalable Space-Based RF Analytics Model, Morgan Stanley Says

HawkEye 360 (HAWK) is positioned for strong multi-year growth supported by its differentiated space-based signals intelligence platform and expanding government and allied-nation demand, Morgan Stanley said in its initiation report on Monday.The researchers highlighted HawkEye as a unique provider of unclassified radio frequency data at scale, enabled by a constellation of 30-plus satellites supporting applications across defense, maritime monitoring, and communications intelligence.Morgan Stanley said HawkEye's competitive edge stems from its proprietary emitter database and signal-processing capabilities, enabling reuse of radio frequency data across customers in a "one-to-many" model with strong operating leverage and high margins.The report projected around a 41% revenue compound annual growth rate through 2028, driven by new customer wins, international expansion, and new use cases, with HawkEye already EBITDA-positive and expected to generate sustained free cash flow from 2027 as scale increases and capital intensity declines.The next-generation "Block 3" satellites, which are expected to lower unit build costs and improve coverage efficiency, further enhance long-term margin expansion potential, the report added.Morgan Stanley initiated coverage with an overweight rating on the stock and a price target of $41.Shares of HawkEye 360 were up 0.5% in Monday trading.Price: $32.81, Change: $-0.20, Percent Change: -0.62%

$HAWK
Wire

HawkEye 360 Has Differentiated Portfolio, Limited Room for Upside, BofA Says

HawkEye 360 (HAWK) is a provider of radio frequency signal intelligence to US and global clients that is differentiated by its constellation of more than 30 satellites on orbit, but its current valuation already reflects much of the upside, BofA said in a note Monday.The company is "levered to a growing market for [signals intelligence] and space-based defense, with demand set to ramp with budget support," the investment firm said.Also, HawkEye's "deep ties" to several government agencies underpin its visibility and place it "within priority defense areas," BofA said.The investment firm said it expects the company's adjusted earnings before interest, taxes, depreciation, and amortization margin to rise from 21% in 2025 to 38% by 2030 supported by factors like "high incremental margins on data resale and lower-cost satellites."However, while HawkEye's revenue visibility is backed by a solid backlog and government demand, its risk/reward proposition also seems to be "reasonably balanced at current levels," the note said.BofA started coverage of HawkEye 360 with a neutral rating and a $34 price target.Price: $32.81, Change: $-0.20, Percent Change: -0.62%

$HAWK