ASML Affordable stock in a less costly sector, valuation update
In our last note we highlighted that ASML was relative cheap in a costly sector. Over the past months multiples in the sector contracted and the premium of ASML increased. Nevertheless, is the premium of ASML still relative low. Therefore, we expect that ASML will outperform the sector. Furthermore, we see upside based on 2025 multiples and our DCF based valuation is in line with the current valuation. We increase our rating from Hold to Accumulate as we expect ASML to outperform the sector and see upside on 2 out of 3 valuation metrics. However, we reduce our Target Price from € 920 to € 850 as peer multiples contracted.ASML Holding provides lithography systems for the semiconductor industry, manufacturing machines that are used in the production of integrated circuits or chips. Co. develops, produces, markets, sells and services advanced semiconductor equipment systems exclusively consisting of lithography systems. Co. sells its products to micro-processor manufacturers and Foundries, NAND-Flash memory and DRAM memory chipmakers. Co.'s products line includes the following: PAS 5000 lithography systems, which Co. no longer manufactures but continues to refurbish; PAS 5500 products; TWINSCAN DUV systems and TWINSCAN EUV systems based on a new platform utilizing the concepts of the TWINSCAN platform.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.