ASML Stock: Top Analyst Pick As A 'FIFO' Beneficiary With 21% Upside Ahead Of Q4 Earnings
Portfolio Pulse from Surbhi Jain
ASML Holding NV is set to report Q4 earnings with expectations of $5.27 EPS and $7.53 billion in revenues. Cantor Fitzgerald analyst C.J. Muse has an Overweight rating on ASML with a price target of €900, indicating a 21% upside. Despite underperforming in 2023, ASML is seen as a 'FIFO' beneficiary with a potential rebound in bookings in 2Q24, driven by DRAM spending, demand for advanced technologies, and High NA tool demand. Muse projects ASML to lead the SPE group in 2024, outperforming peers like Applied Materials, Lam Research, and KLA Corp.
January 23, 2024 | 11:28 pm
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POSITIVE IMPACT
ASML is anticipated to report strong Q4 earnings and is rated as a top pick by Cantor Fitzgerald with a significant upside potential. The company is expected to rebound in 2024, leading the SPE sector.
The positive analyst rating and the expected rebound in bookings for ASML in 2024 suggest a bullish outlook for the stock in the short term, especially with the upcoming earnings report.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Applied Materials has been outperforming ASML over the past year, but faces potential challenges in 2024 due to high multiples and modest WFE growth expectations.
The article suggests that Applied Materials' high valuation and modest growth expectations for 2024 could challenge its stock performance in the short term.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
KLA Corp has performed well but may face similar challenges as its peers in 2024, with high multiples and modest WFE growth expectations posing as potential headwinds.
KLA Corp's recent performance has been strong, but the article suggests potential short-term challenges due to valuation and industry growth rates.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
Lam Research Corporation has shown strong performance but may encounter challenges in 2024 due to its valuation and modest WFE growth expectations.
The article indicates that Lam Research's stock might be negatively impacted in the short term due to its current high valuation and the industry's modest growth expectations.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 60