CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We reduce our 12-month target by $117 to $731, 35x our 2024 EPS view, above peers due to ASML’s monopoly position in EUV and strong growth expected in 2025. We up our 2023 EPS estimate by EUR0.68 to EUR19.60, but reduce 2024’s by EUR3.05 to EUR19.88 as more sales are pushed into 2025 (we also start our 2025 EPS estimate at EUR25.56). ASML printed Q3 EPS of EUR4.81 (+12% Y/Y) and revenue of EUR6.67B (+15% Y/Y), both near consensus. Macro uncertainty is driving flat estimates for 2024 as ASML prepares for a strong 2025, driven by new global fab openings. We see 2024 estimates as conservative as demand for ASML’s systems remains above supply (backlog of EUR35B) and we see upside from a potential recovery in memory. We remain confident in ASML’s growth path as the only EUV systems provider, and we see sustained growth in 2025 and beyond from High-NA EUV and accelerating regionalization efforts. We see minimal impact from new U.S. export regulations on October 17, which only affect 10%-15% of ASML’s China business.