2024-01-24 13:25:56 ET
Summary
- ASML's stock has performed well, delivering an 18% return, but is still down from its all-time high in late 2021.
- Q4 results show strong growth, with revenue up 12.5% and net bookings at an all-time high of 9.2 billion euros. For 2023, revenue was up 30%.
- ASML's valuation is expensive near-term at 37x P/E (and flat 2024 outlook), but justified by its long-term growth potential and monopoly in the EUV lithography market.
- Nevertheless, given the 2024 guidance and rally in the last few months, it is probably not the most opportune time to buy the stock either.
Investment Thesis
ASML ( ASML ) has delivered a strong 2023, especially given the macro environment, proving yet again that it is high-quality company worthy of an investment. Of course, such kind of companies are also quite persistently rewarded with high valuation, which means that it is a stock for patient investors, and carries some risk given that potential downside that such a valuation carries....
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ASML: Strong Performance Justifies Strong Valuation