Incannex Healthcare stock tumbles after filing $100M offering
On Wednesday, Raymond (NSE:RYMD) James analyst Srini Pajjuri adjusted the price target for ASML Inc. (NASDAQ:ASML), currently trading at $634.93, to $850, down from the previous target of $900, while maintaining a Strong Buy rating on the shares. As a prominent player in the Semiconductors & Semiconductor Equipment industry according to InvestingPro, ASML reported first-quarter results for 2025, which showcased a gross margin strength of 51.28% that surpassed expectations, although its second-quarter outlook fell short of the consensus.
ASML’s bookings in the first quarter saw a significant decrease, dropping 44% quarter-over-quarter to €3.9 billion. The company’s management attributed this decline to the variability inherent in quarterly results. Despite the presence of tariff-related uncertainties, the management team reaffirmed their revenue and gross margin projections for 2025 and continued to anticipate 2026 as a year of growth. InvestingPro data shows the company maintains strong financial health with an overall score of 2.78 (GOOD), supported by robust cash flows that can sufficiently cover interest payments.
The company’s sales in China, which represented 27% of total system sales, remained consistent with the previous quarter. This stability in the Chinese market is reportedly tracking slightly above the company’s earlier expectations for the year, which could help counterbalance softer trends in Deep Ultraviolet (DUV) technology sales in other regions.
While Raymond James is largely keeping its revenue estimate for ASML unchanged for 2025, the firm has revised its earnings per share (EPS) forecast downward, factoring in higher-than-anticipated operating expenses. Looking ahead, the analysts at Raymond James express a positive outlook, citing several factors that could drive growth for ASML. These include the increasing demand for AI compute intensity, the necessity for large-scale GPU/XPU clusters, and ASML’s dominance in Extreme Ultraviolet (EUV) lithography technology.
The analysts highlight ASML’s attractive valuation, noting that its price-to-earnings (P/E) ratio of 29.5x is favorable compared to the five-year average of 34x. They also point to the company’s potential for double-digit growth and its track record of solid margin execution as reasons for their continued Strong Buy recommendation. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which covers what really matters about ASML through intuitive visuals and expert analysis. Notable strengths include a 19-year track record of consistent dividend payments and a strong return on equity of 47%.
In other recent news, ASML Holding NV (AS:ASML) reported first-quarter revenue of EUR 7.7 billion, which was slightly below market expectations of EUR 7.8 billion, but its earnings per share (EPS) of EUR 6.00 exceeded forecasts. Analysts at TD Cowen and Evercore ISI noted the company’s gross margin at 54.0%, surpassing the consensus estimate of 52.2%. Despite a 44% drop in bookings to EUR 3.9 billion, TD Cowen maintained a Buy rating with a price target of EUR 825, while Evercore ISI kept an Outperform rating with a target of EUR 965. Citi also maintained a Buy rating, setting a target of EUR 930, highlighting ASML’s technological advancements and potential revenue growth in 2025 and 2026.
ASML’s performance is under scrutiny as it navigates tariff-related headwinds that impacted its gross margin by about 100 basis points. The company’s sales in China, which represent 27% of total sales, decreased by 19% quarter-over-quarter, reflecting the ongoing challenges in that market. Analysts from TD Cowen and Citi expressed confidence in ASML’s long-term prospects, citing its strategic position in the semiconductor industry and recent technological developments. Additionally, the global semiconductor sector has been affected by new tariffs announced by President Trump, with ASML’s shares among those impacted. Despite these challenges, analysts suggest that ASML’s long-term growth outlook remains positive, driven by its leadership in lithography technology.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.