ASML stock forecast today
$943.83
Growth potential 32.36%Moderate purchase
Based on ratings from 15 analysts
| High forecast | US$1148.00 |
|---|---|
| Average forecast | $943.83 |
| Low forecast | $767.00 |
ASML Stock Forecast Details
ASML Holding N.V. NASDAQ: ASMLThe semiconductor giant, which specializes in advanced equipment systems, may be starting to attract the attention of savvy investors. Despite the highest valuations in the past two quarters, the $280 billion company is in correction territory, down 35% from its 52-week high and down 5.61% year-to-date. While the recent downturn may seem alarming, it could present an attractive opportunity for value appreciation in a thriving industry despite short-term setbacks. With analysts maintaining bullish price targets, now may be a good time to consider ASML as we head into the new year.
The Biggest Tech Company You Probably Didn’t Know About
Headquartered in the Netherlands, ASML is one of Europe’s largest technology firms and arguably one of the most influential companies in the semiconductor supply chain. Although it doesn’t have the same name recognition as NVIDIA. NASDAQ: NVDA or advanced microdevices NASDAQ: AMDIts advanced lithography equipment plays a vital role in modern semiconductor manufacturing.
ASML is the only manufacturer of machines for extreme ultraviolet (EUV) lithography, the technology needed to create the microchips that power artificial intelligence, smartphones and data centers. Without ASML equipment, the technology world would not have the tools to advance quickly. This unique position makes ASML indispensable to the semiconductor industry, effectively maintaining a monopoly in its niche.
Recent weakness after strong results
ASML’s third-quarter earnings report initially looked positive, beating estimates for the company’s revenue and earnings per share. However, weak guidance overshadowed those results, sending shares down nearly 20% in the following days.
The company now forecasts 2024 revenue of between 30 and 40 billion euros, down an average of 7% from previous estimates. Future revenue, measured by orders, also fell short of expectations, coming in at $2.8 billion, 53% below forecasts. The shortage reflects weakness in broader semiconductor demand, with logic chip orders delayed and capacity expansion limited for memory chips.
However, ASML management stressed that its long-term growth potential remains intact, viewing these issues as temporary setbacks.
Potential game with profit
ASML’s current price-to-earnings (P/E) ratio of 37.45 may seem expensive at first glance, but its forward P/E of 28.21 signals a more attractive valuation relative to its future earnings potential. The forward P/E is now below its 10-year median, indicating the stock may be undervalued.
Technically, ASML is trying to stabilize after finding support at nearly $640. The stock is making a higher low, with its 50-day and 20-day moving averages converging, potentially signaling a bottom.
From a broader valuation perspective, ASML’s price-to-sales (P/S) ratio of 9.88 and current ratio of 1.55 also indicate financial health and liquidity, giving a good chance of recovery as sentiment markets will change.
Analysts remain optimistic
ASML Holding (ASML) price chart for Friday, December 13, 2024.
Despite recent headwinds, Wall Street still sees significant upside potential for ASML stock. Based on fifteen analyst ratings, the stock is rated a Moderate Buy with an average price target of $943.83, implying an upside of 32% from current levels. BNP Paribas recently initiated coverage with an Outperform rating and an $858 price target, reflecting strong confidence in the company’s fundamentals.
ASML’s recent correction has undoubtedly dented investor confidence, but its important role in the semiconductor industry coupled with its historically low valuation makes it an intriguing price play. As analysts continue to support the stock with strong price targets, investors may see this pullback as an opportune time to buy ASML shares before the new year brings a potential recovery.
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