ASML: a best pick in sector for Oddo

(CercleFinance.com) - Analysts are confident that sector players (manufacturers and equipment suppliers) will be able to meet - or even exceed - their forecasts and consensus expectations during Q4 2021.


Oddo believes that structural growth in the sector is expected to be closer to 10% for a few years rather than about 6%/7%, saying that as a result, there may be more pleasant surprises than the market is taking in.

ASML (O/P, TP 900 euros) and ASMi (O/P, TP 490 euros) remain "must haves". Analysts are raising their outlook for BESI (O/P) and their TP to 95 euros (from 87 euros) as the cycle will remain favourable. They remain positive on Aixtron (O/P, TP 26 euros), the broker added.

Amongst "manufacturers", they continue to like STM (O/P, TP 56 euros vs. 53 euros) and IFX (O/P, TP 52 euros vs. 50 euros). In midcaps, they are still positive about Soitec (O/P, TP 280 euros), due to its exposure to structural growth in 5G.

ASML shares closed up almost 2% yesterday.


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