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On Thursday, JPMorgan maintained a positive outlook on ASML Holding NV (AS:ASML:NA) (NASDAQ: ASML), with a reaffirmed Overweight rating and a price target of €1,057.00. The firm’s analyst highlighted the potential for the stock to perform well in the first half of 2025, ahead of major customer decisions expected in 2026. According to InvestingPro data, ASML, currently valued at $280.16B, is trading near its Fair Value, with analysts setting targets ranging from $688 to $1,130.
ASML, a prominent player in the semiconductor equipment industry with a strong financial health score of "GOOD" on InvestingPro, is anticipated to benefit from robust order activity in the near term. The company generated $29.3B in revenue over the last twelve months and maintains an impressive 18-year dividend payment streak. According to JPMorgan, the company has two major customers whose purchases are crucial for ASML to achieve revenues exceeding €38 billion and an EPS of more than €33. These customers are expected to invest in tools for upcoming projects, with Intel (NASDAQ:INTC) planning to expand its 14A process and Samsung (KS:005930) preparing to equip its Taylor, Texas fabrication plant.
The analyst pointed out that Intel is projected to order approximately €3 billion worth of additional tools from ASML for its process buildout. Similarly, Samsung’s qualification in HBM at Nvidia (NASDAQ:NVDA) could lead to a €2.9 billion investment in ASML’s tools for its Texas facility. However, concrete developments regarding these orders will likely not be disclosed until the summer of 2025.
ASML’s performance and growth prospects are closely tied to the decisions of these significant clients. The company’s success hinges on the semiconductor industry’s expansion and the adoption of advanced manufacturing processes by leading chipmakers. As such, ASML’s stock trajectory in the near term could reflect investor sentiment on the company’s ability to secure and fulfill these sizable orders.
Investors and industry watchers will be keeping a close eye on ASML as the summer of 2025 approaches, which is expected to bring more clarity on the company’s growth trajectory and its relationships with key customers in the semiconductor sector. For deeper insights into ASML’s valuation metrics and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes detailed analysis of the company’s P/E ratio of 39.01 and other key financial indicators.
In other recent news, ASML Inc. has been making headlines with its robust financial performance and optimistic projections. The company reported impressive fourth-quarter results for 2024, surpassing consensus expectations due to significant 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. Furthermore, 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. 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. Meanwhile, Cantor Fitzgerald maintained its neutral stance on ASML with a $900 price 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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