ASML: Credit Suisse cuts target price

(CercleFinance.com) - Credit Suisse has cut its target price for the share of supplier of systems for semiconductors, ASML, to 300 euros (against 330 euros), although has confirmed its outperform rating.

"Risks for ASML include macro slowdown, slower adoption of new tools and reliance on few critical suppliers," the broker said.

Following yesterday's negative pre-announcement, analysts have reduced their revenue estimates by respectively 9%/5%/5% over 2020/21/22, resulting in a 20%/9%/9% reduction in EPS over the next 3 years.

ASML has reduced its Q1 revenue forecast by 750 million euros (or 23%).

"While causes of revenue miss appear to be timing related (and not demand slowdown), we have built some incremental caution in our estimates given near term slowdown in smartphones and semis in general along with supply chain uncertainty" Crédit Suisse adds.


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