Morgan Stanley analyst Shane Brett lowered the price target on Onto Innovation Inc. (NYSE: ONTO) to $360.00 (from $383.00) while maintaining a Overweight rating.

The analyst comments "Mix should continue to favor ONTO. We’re bullish on Intel and memory WFE into 2027, with Intel WFE growing the fastest among major spenders at ~70% and memory WFE continuing to outpace logic (+41% vs. +35%). Beyond these favorable mix dynamics, we expect process control intensity headwinds to reverse in 2027. In DRAM, initial 1D wafer adds should drive 30%+ growth in process control investment, while at TSMC, initial 1.4nm wafer adds should drive ~50% growth. At TSMC specifically, we estimate process control spend per kwpm on 1.4nm in 2027 will be ~4x that of 3nm in 2026."