In a report released today, Lee Simpson from Morgan Stanley maintained a Buy rating on ASML Holding NV, with a price target of €950.00.
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Lee Simpson has given his Buy rating due to a combination of factors including ASML Holding NV’s strong bookings and optimistic future guidance. Despite a slight underperformance in Q3 sales compared to expectations, the company reported robust bookings of €5.4 billion, with a significant portion from EUV tools, exceeding initial forecasts. This strong performance in bookings suggests a healthy demand for ASML’s products, which is a positive indicator for future revenue.
Furthermore, ASML’s guidance for Q4 sales is approximately 4% above consensus, with a projected gross margin of 52%, which is ahead of market expectations. The company also anticipates continued growth into FY25, with sales expected to rise by around 15% year-on-year. Although there is a noted weakness in the Chinese market, the overall outlook remains positive, supported by ASML’s strategic investments and strong market position in the semiconductor industry.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a €1,000.00 price target.