ASML: best sector pick for Oddo
(CercleFinance.com) - Oddo underlines that unfortunately the semi-conductor sector is exposed to the consequences of the Coronavirus, indeed, unsurprisingly.
Schematically, this crisis could "slash" the broker's market growth forecast to 0% (against +5% previously), with earnings growth cut by 15% to 20%.
Oddo believes that the combination of the impact on supply (production chain) and demand could lead to profit warnings for both Q1 and H1.
Without waiting too long, the broker would in priority buy equipment manufacturers such as ASML and ASMi, as the structural demand for technological upgrades will remain. Shares that should be closely monitored include STM and Soitec, as their share prices are starting to become interesting once again (even though profit warnings cannot be ruled out), Oddo adds.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.