Optimistic Buy Rating for ASML Holding NV Despite Short-term Challenges
Howard Kim
Oct 17, 2024, 12:55 AM
TD Cowen analyst Krish Sankar maintained a Buy rating on ASML Holding NV (0QB8 – Research Report) today and set a price target of €825.00.
Krish Sankar’s rating is based on several key factors that influence the financial outlook of ASML Holding NV. Despite the company’s lower-than-expected third-quarter results and a reduced revenue and gross margin outlook for 2025, Sankar believes there are underlying strengths in ASML’s operations. One of these strengths is the company’s solid execution of its EUV technology roadmap, which remains on track and could potentially benefit from future demand shifts. Additionally, the normalization of China sales is seen as a positive move, reducing dependency and risks related to geopolitical issues.
Furthermore, the potential for ASML to provide guidance on 2026 at their upcoming Capital Markets Day could offer a clearer picture of its future growth trajectory, which might reassure investors. Although the current market environment presents challenges, including uncertainties in PC and mobile markets and geopolitical tensions, there are opportunities in leading-edge technologies and AI trends that could drive future demand for ASML’s products. These factors collectively contribute to Sankar’s optimistic Buy rating for ASML’s stock.
Sankar covers the Technology sector, focusing on stocks such as Apple, Micron, and Western Digital. According to TipRanks, Sankar has an average return of 16.4% and a 62.86% success rate on recommended stocks.