ASM International stock downgraded by Jefferies on weak 2026 outlook

Published 26/06/2025, 08:20
ASM International stock downgraded by Jefferies on weak 2026 outlook

Investing.com - Jefferies downgraded ASM International NV (AS:ASMI) (AS:ASMIY (OTC:ASMIY)) from Buy to Hold on Thursday, while raising its price target to EUR530.00 from EUR490.00.

The downgrade comes as Jefferies forecasts ASM’s 2026 revenues to grow by only 3%, significantly below the current consensus estimates of 15% growth. The firm’s earnings per share forecast for fiscal year 2026 stands 12% below consensus expectations.

Jefferies expects the weakness to primarily stem from the DRAM segment, where it projects wafer fabrication equipment to decline 16% in 2026. The stock currently trades at 31 times Jefferies’ forecasted FY26 earnings per share.

The research firm considers this valuation as fair, noting that near-term headwinds are balanced against the company’s attractive longer-term growth outlook. Despite the downgrade, Jefferies raised its price target to reflect this longer-term potential.

Jefferies maintains that ASM International remains attractive for long-term investors due to the strong atomic layer deposition and epitaxy layer count growth expected in both advanced logic and DRAM nodes over the next 5-7 years.

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