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Thursday, Berenberg analysts restated their Buy rating on ASML Holding NV (AS:ASML:NA) (NASDAQ: ASML) shares, with a price target of EUR800.00. The semiconductor equipment giant, currently valued at $280 billion, is trading near its InvestingPro Fair Value. The firm’s confidence in the stock is bolstered by ASML’s impressive fourth-quarter order intake, which surpassed market expectations and reinforced the company’s revenue outlook for 2025.
ASML reported a robust EUR7 billion in orders for the fourth quarter of 2024, with EUR3 billion attributed to sales of its extreme ultraviolet lithography (EUV) equipment. This figure significantly exceeded the consensus estimate of EUR4 billion and the EUR2 billion in orders recorded in the previous quarter. The surge in orders was driven by increased investments from leading foundries and mainstream memory companies. According to InvestingPro data, ASML maintains strong financial health with a 51% gross profit margin and moderate debt levels.
The substantial order volume in the fourth quarter is seen as a positive indicator for ASML’s 2025 revenue guidance, particularly concerning the EUV segment. Analysts believe that the current order backlog provides a solid foundation for the company to meet its revenue targets for the upcoming year.
Additionally, the report noted a shift in ASML’s regional revenue composition. The company’s business in China represented a smaller percentage of total revenue in the fourth quarter of 2024, aligning with expectations. This change in geographic revenue distribution further underscores the company’s diversified customer base and global reach.
ASML, a key supplier in the semiconductor industry, specializes in developing advanced lithography systems, which are crucial for manufacturing the most sophisticated chips. The company’s EUV technology is especially critical for producing next-generation semiconductors, making its performance and order book key indicators of the sector’s health and progress. With a strong analyst consensus recommendation of 1.77 (where 1 is Strong Buy), ASML shows promising potential. Discover 12 additional key insights about ASML and access comprehensive financial analysis through the Pro Research Report, available exclusively on InvestingPro.
In other recent news, ASML Holding NV has been garnering significant attention due to its robust financial performance and optimistic projections. The company has surpassed consensus expectations with its fourth-quarter results for 2024, largely due to substantial growth in the Services sector. ASML’s bookings surged by 170% quarter-over-quarter to €7.1 billion, exceeding expectations set by Raymond (NSE:RYMD) James. Additionally, ASML provided an optimistic sales guidance of €7.75 billion for the first quarter of 2025, surpassing the consensus of €7.25 billion.
ASML’s CEO, Christophe Fouquet, expressed optimism over the recent market disturbance caused by DeepSeek’s low-priced chatbot, viewing it as an opportunity for increased demand for ASML’s chipmaking machines. Analysts from various firms have provided their take on ASML’s performance and outlook. JPMorgan maintained a positive outlook on ASML with a reaffirmed Overweight rating and a price target of €1,057.00. Raymond James maintained a Strong Buy rating on ASML with a $900 target, while BofA Securities affirmed their Buy rating steady at a EUR803 target. Bernstein analysts also maintained their Outperform rating on ASML with a €850 target.
These recent developments reflect analysts’ varying confidence in ASML’s ongoing growth trajectory. It’s important to note that these are recent developments and do not provide a comprehensive view of the company’s financial health or future performance.
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