ASML Investors are Overlooking Earnings Growth Potential
Dow Jones
6 hours ago
0829 GMT - ASML Holding investors are overlooking pricing, growing machine output and increasing exposure to memory that give the Dutch semiconductor-equipment maker extra earnings potential, UBS analysts write in a research note. ASML executives said in July that a tight chip market gave the company better pricing power. Analysts say better pricing for its machines could lift ASML's gross margin to around 60% as early as 2028 as opposed to 2030. ASML also plans to boost output of its semiconductor-making machines to meet demand, while memory is poised to become an even stronger growth engine in coming years, analysts say. They reiterate a buy rating for the stock, but raise their price target to 2,350 euros from 2,250 euros. ASML shares trade 0.4% higher at 1,458.20 euros.
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