• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Mizuho TMT specialist just highlighted this ‘top SMID cap’ stock

by January 14, 2025
written by January 14, 2025

Iinvesting.com — A Mizuho analyst identified Onto Innovation (NYSE:ONTO) as a standout “top SMID cap long idea,” highlighting its potential for significant upside in 2025. 

Despite a cautious outlook on the semiconductor capital equipment sector due to differing expectations between buyside investors and company management regarding industry growth, the firm remains bullish on Onto Innovation.

According to Mizuho (NYSE:MFG), Onto Innovation is poised for a “beat and raise” set up in 2025, driven by new inspection and metrology tool orders anticipated in the first half of the year. 

These orders, which are said to be crucial for supporting AI silicon production through TSMC’s CoWoS technology, were confirmed with a $69 million volume purchase agreement from a leading DRAM manufacturer. 

The agreement includes Onto’s optical metrology ecosystem and the new Iris G2 system, designed for both common and critical film metrology.

“This morning ONTO released a PR with that awaited follow-on HBM equipment order from a leading DRAM manufacturer,” Mizuho noted.

The delivery of these orders begins in Q1 2025, aligning with expectations of a DRAM market recovery. Additionally, Onto’s robust demand for film metrology nearly doubled year-over-year, reinforcing its growth trajectory.

Mizuho believes Onto Innovation is well-positioned as the best pure-play SMID inspection and metrology stock, benefiting from expansions in HBM, logic, and gate-all-around (GAA) technology. 

The analysts highlight that Onto’s revenue growth estimates for Q1 2025 and the full year appear conservative, with the potential for over 30% annual EPS growth and a PEG ratio under 1x.

With an average consensus target price 33% higher than its current $190 stock price, Onto Innovation is deemed a compelling investment. The Mizuho analyst says he would be an early buyer, noting that the setup makes ONTO a top pick in the SMID cap space.

 

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Brazil ‘seriously concerned’ about Meta changes to hate speech policy
next post
Key quotes from French Prime Minister Bayrou’s parliamentary address

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025
    • This California startup is cleaning water and removing CO₂ from the atmosphere — all at a reduced cost

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (504)
    • Stock (6,426)

    Latest News

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

    Popular News

    • Brazil central bank chief highlights ‘huge’ deanchoring of inflation expectations
    • Netflix says 60 million households worldwide tuned in for Paul-Tyson match

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy