CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target by $118 to $849, 29.5x our ’25 EPS view, near ASML’s three-year average two-year forward multiple (~29.4x), as we shift our focus from ’24 to ’25. We lower our ’24 EPS estimate to EUR19.65 from EUR19.88 and increase ’25’s view to EUR26.15 from EUR25.56 as we budget in a bit more softness in early ’24, followed by an acceleration toward the end of the year and solid strength in ’25 as new technologies like gate-all-around are introduced in higher volumes. We see Chinese demand pulling back to start ’24 as export restrictions take hold, but we expect demand for ASML’s one-of-a-kind systems to be picked up by other countries as the global race for advanced semiconductor technology continues. We note ASML’s backlog remains sizable (EUR35B), supporting sales despite a soft macro. We do not expect much competition from Canon’s nanoimprint lithography machines (which recently achieved 5-nm production capability) given the advantage in volume and reliability offered by ASML’s EUV machines.