Hopper58 schreef op 5 september 2024 09:04:
ASML Holding NV: A Buy Rating with Room for Positive Revaluation Amidst Earnings Growth Potential
Catie Powers
Sep 05, 2024, 07:35 AM
ASML Holding NV (0QB8 – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Lee Simpson from Morgan Stanley maintained a Buy rating on the stock and has a €925.00 price target.
Lee Simpson has given his Buy rating due to a combination of factors including the anticipated recovery of ASML Holding NV’s order book by 2024 and the expected significant earnings increase in 2025. Despite the reduced estimates for the fiscal years 2025 and 2026 due to the impact of reduced spending by a key customer, Intel, Simpson remains confident in the company’s growth prospects. The report highlights that the market has not fully considered the potential for earnings growth in 2026, thus suggesting room for positive revaluation.
Furthermore, Simpson acknowledges the potential for a delay in the adoption of High NA systems by some customers, yet he notes Samsung’s readiness to adopt these systems and Intel’s commitment to High NA technology. The valuation remains positive, with an Overweight rating sustained by the belief that the rewards outweigh the risks, despite a trimmed price target. This optimism is supported by the quality of ASML’s earnings and the company’s position within the growth cycle of the semiconductor industry, which suggests a continued upward trajectory despite near-term uncertainties.
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