ASML: share up as 2030 targets reaffirmed
(CercleFinance.com) - On Thursday, ASML, the world's leading manufacturer of semiconductor production equipment, reaffirmed its financial targets for 2030, an announcement that reassured the market following the severe warning issued by the Dutch company last month.
The Veldhoven-based group - often considered a good barometer of Europe's high-tech sector - confirmed that it was targeting sales of E44bn and E60bn for 2030, with a gross margin still expected to be between 56% and 60%.
The downside is that sales at the lower end of this range are still possible, commented analysts at Oddo BHF this morning.
The upside is that performance at the upper end of the range is still possible, which was far from certain following the profit warning for 2025, they added.
In a press release issued on the occasion of its investor day, ASML stresses that the outlook for the semiconductor sector remains 'promising', given the growing role played by chips in today's major trends, led by AI.
According to its estimates, the global semiconductor market should exceed the $1,000bn mark by 2040, corresponding to an annual growth rate of around 9% over the period.
Following the positive outlook presented by the group, ASML shares rose by 5% on Thursday morning, making it one of the strongest performers on the pan-European STOXX Europe 600 index.
The share price, which has fallen by 17% since its warning on October 15, is still down by more than 7% since the start of the year.
In view of the current share price, we believe that the risk/reward profile remains favorable, and maintain our 'outperform' rating on the stock", write Oddo's analysts.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The Veldhoven-based group - often considered a good barometer of Europe's high-tech sector - confirmed that it was targeting sales of E44bn and E60bn for 2030, with a gross margin still expected to be between 56% and 60%.
The downside is that sales at the lower end of this range are still possible, commented analysts at Oddo BHF this morning.
The upside is that performance at the upper end of the range is still possible, which was far from certain following the profit warning for 2025, they added.
In a press release issued on the occasion of its investor day, ASML stresses that the outlook for the semiconductor sector remains 'promising', given the growing role played by chips in today's major trends, led by AI.
According to its estimates, the global semiconductor market should exceed the $1,000bn mark by 2040, corresponding to an annual growth rate of around 9% over the period.
Following the positive outlook presented by the group, ASML shares rose by 5% on Thursday morning, making it one of the strongest performers on the pan-European STOXX Europe 600 index.
The share price, which has fallen by 17% since its warning on October 15, is still down by more than 7% since the start of the year.
In view of the current share price, we believe that the risk/reward profile remains favorable, and maintain our 'outperform' rating on the stock", write Oddo's analysts.
Copyright (c) 2024 CercleFinance.com. All rights reserved.