ASML - ASML: Upgrading To Buy On EUV Tailwinds
2024-07-21 11:50:19 ET
Summary
- ASML reported its 2QFY24 results and outlook earlier this week causing a pullback on disappointing Q3 guidance. We say buy the dip.
- Management guided for a 7-17% Q/Q growth to €6.7B-€7.3B, missing consensus estimates of €7.67B.
- Our upgrade is based our belief that the higher risk profile of an expanded U.S. export ban and geopolitical tensions has been priced in.
- Now, ASML is better positioned to outperform on increased industry adoption of EUV for DRAM and logic used in AI servers and edge AI devices.
- We expect ASML to outperform the peer group in 2025 and believe the stock has been de-risked at current levels.
We're upgrading ASML ( ASML ) to a buy after a long, neutral stance. The company reported its 2Q24 results earlier this week, causing a massive pullback of over 12%, as shown in the stock's one-month chart against the S&P 500 and semi-cap names Applied Materials ( AMAT ) and Lam Research ( LRCX ). ...
ASML: Upgrading To Buy On EUV Tailwinds