Citi cuts ASM International stock target to EUR600, maintains Buy

Published 01/05/2025, 08:02
Citi cuts ASM International stock target to EUR600, maintains Buy

On Thursday, Citi analyst Amit Harchandani adjusted the price target for ASM International NV (AS:ASMI) (ASM:NA) to €600, a reduction from the previous €750, while reaffirming a Buy rating on the company’s shares. The revision comes as ASM International recalibrates its expectations for the remainder of 2025, citing significant foreign exchange (FX) challenges starting in the second quarter and, to a smaller degree, a slower demand in the power and analog sectors.

Harchandani’s commentary sheds light on the various factors influencing the revised price target. "ASM International lowered expectations for the remainder of 2025, driven by the material FX headwind from 2Q onwards and to a lesser extent sluggish demand in the power/analog space," he noted. Although the company has not observed any direct impact on customer orders due to tariffs, the potential for additional pressure exists.

The analyst emphasized a comprehensive approach to the company’s projections, stating, "We aim to take into account not only FX but also a more cautious approach to modelling underlying demand." This conservative stance has led to a significant reduction in the estimated earnings per share (EPS) for the years 2025-2027, with a high-teens percentage cut. Despite this, Harchandani’s outlook suggests that ASM International’s EPS is still on track to grow at a high-teens compound annual growth rate (CAGR) through to 2027.

In light of these adjustments, the lowered target price reflects both the immediate challenges faced by ASM International and the analyst’s longer-term confidence in the company’s growth trajectory. Harchandani concluded with a reaffirmation of the Buy rating, indicating continued positive expectations for ASM International’s performance despite the near-term headwinds and market uncertainties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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