Barclays upgrades ASM International stock rating to overweight

Published 03/06/2025, 08:08
Barclays upgrades ASM International stock rating to overweight

On Tuesday, Barclays (LON:BARC) analysts upgraded ASM International NV (AS:ASMI) (ASM:NA) stock rating to overweight from equalweight. The analysts also raised the price target to €600 from €550, citing increased confidence in the company’s exposure to leading-edge logic and its revenue mix.

The analysts noted that their detailed analysis of wafer fab equipment (WFE) growth drivers for 2026 and beyond led to a preference for companies with strong exposure to leading-edge logic. They emphasized ASM International’s strategic position in this sector, making it their preferred choice within the European semiconductor capital equipment space.

Barclays highlighted that ASM International’s valuation, while not cheap, is justified given the projected multi-year growth. The analysts stated that they align with consensus estimates for 2026 and are moderately ahead of revenue projections for 2027. The firm expressed increased visibility on the company’s sales and marketing wins due to detailed modeling and channel checks.

The analysts also pointed out that ASM International’s limited exposure to the memory sector presents both an opportunity and a reduced risk from potential uncertainties in memory capital expenditures in 2026. This strategic positioning is seen as a favorable factor for the company’s future performance.

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