Bernstein analyst Sara Russo raised Asmack's rating from “equal to the market” to “superior to the market”
The Zhitong Finance App learned that analysts at Bernstein said that investors in ASML.US (ASML.US) should ignore any short-term turbulence and focus on the chip equipment manufacturer's profit potential next year.
On Monday, analyst Sara Russo upgraded Asmack's rating from “equal to the market” to “better than the market,” and she also raised her price target from $664 to $869.
She wrote in the report, “We believe investors now have a good understanding of the 2024 transition year, and for Asmack, it now looks like most of the risks have been reduced”. Russo expects “a strong recovery in FY2025.”
Extreme ultraviolet (EUV) lithography machines manufactured by the Dutch company are critical to the manufacture of advanced semiconductors, and its customers include TSM.US, Samsung Electronics, and Intel (INTC.US).
Asmack's stock rose 1.21% to $766.68 during Monday afternoon trading.
The analyst estimates that Asmack's earnings will increase 45% in 2025 if the situation is roughly flat this year. She believes that the chip equipment manufacturer's technological leadership in the field of lithography tools is unrivaled, Russo wrote, “It appears that Asmack's dominant position in the field of lithography will indeed continue.”
Over the past 12 months, Asmack's stock price has risen 19%, compared to a 56% increase in iShares Semiconductor ETF (SOXX.US).