ASML: Credit Suisse raises target price after upgrade
(CercleFinance.com) - Two days after upgrading ASML from "neutral" to "outperform," on Thursday Credit Suisse raised its target price for the stock from 180 euros to 194 euros, citing strength in the Dutch semiconductor equipment maker's orders.
While bears will likely declare December quarter as a peak in orders, extreme ultraviolet (EUV) ramp will assure continued revenue growth for 2019/2020, the broker wrote in a note.
"Given 2018 revenues are already close to 2020 target, EPS targets are largely dependent on margin expansion - a factor largely in ASML's control given their near monopolistic status and increasing value of tool," Credit Suisse said.
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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.
While bears will likely declare December quarter as a peak in orders, extreme ultraviolet (EUV) ramp will assure continued revenue growth for 2019/2020, the broker wrote in a note.
"Given 2018 revenues are already close to 2020 target, EPS targets are largely dependent on margin expansion - a factor largely in ASML's control given their near monopolistic status and increasing value of tool," Credit Suisse said.
Copyright (c) 2018 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.