ASML: UBS raises price target

(CercleFinance.com) - UBS raised its price target for the ASML share from 350 euros to 395 euros on Thursday, saying that the Dutch semiconductor-equipment maker is having a "strong start" to 2021 as TSMC capex accelerates.


"As we start 2021, we believe demand for ASML's EUV tools is moving back towards supply constraint," the broker said in a research note.

UBS said it sees an increased pace of investment from chip maker TSMC as it prepares to ramp up its N3 node in 2023 and as Samsung could start litho investment towards its 3nm GAA process in 2021.

"We continue to see ASML as one of the most resilient long-term business models in the sector and remain confident in the long-term position of the business," it added.

However, the broker pointed out that the ASML share is currently trading at 2021 and 2022 P/Es of 37x and 30x respectively, compared to its historic 12-month forward P/E of 25x, which explains why it maintains its "neutral" rating on the shares.

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