ASML: UBS maintains buy rating - despite fire at Prodrive

(CercleFinance.com) - UBS has confirmed its buy rating on the Dutch ASML stock, despite the fire that hit a supplier of the equipment manufacturer for semiconductor makers.


The broker has also confirmed its target price of 200 euros, meaning upside potential of 30%.

Analysts have reviewed the situation regarding the fire that destroyed part of the production capacity and stock of a component supplier, Prodrive. ASML has warned that, as a result, some of its planned deliveries in 2019 (although not in 2018) will be delayed, that it is working with Prodrive to restore its production capacities, and is also studying the use of alternative suppliers.

At this point, UBS believes that it is too early to "fully" quantify the impact of the fire, but analysts point out that they were already cautious about next year. In essence, they add that it is currently unknown whether Prodrive was the sole ASML provider for the components in question, although it is likely that this is not the case, and that all Prodrive's production capacity has not been destroyed, and that it is possible to find other OEMs.



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