On Monday, Cantor expressed a positive outlook for ASML Holdings (NASDAQ:AS:ASML) as the company approaches its earnings release. The firm anticipates a potential modest beat and raise in the upcoming report, with particular attention being focused on the company's bookings.
Management previously indicated that approximately €4 billion per quarter is required to meet the mid-point of their CY25 target model. However, Cantor calculates that nearly €6 billion per quarter would be necessary to achieve the high end of that model.
Cantor believes reaching this higher number is entirely possible, especially considering that TSMC is expected to order around €8 billion worth of equipment from ASML by the end of 2024. The timing of these orders is currently uncertain, with expectations leaning towards the June-August period. Despite management's efforts to temper expectations, Cantor suggests that the June quarter could reveal underlying strength in the company's performance.
In addition, Cantor anticipates supportive qualitative commentary regarding ASML's strength leading into the CY25 upside case. This optimism is based on reports of increased upside from the Immersion (NASDAQ:IMMR) technology at the recent SemiconWest industry event for both 2024 and 2025. However, detailed quantified commentary is likely to be reserved until the company's November Analyst Day.
ASML is highlighted as Cantor's top pick within the equipment sector, maintaining a positive stance on the stock's potential. The firm's analysis suggests that while ASML management has been conservative in its forecasts, indicators point to a strong performance potential for the company in the near term.
In other recent news, ASML, a leading supplier of chipmaking equipment, has been the focus of significant developments. The company's shares hit an all-time high amid growing optimism about the prospects of its top customer, Taiwan Semiconductor Manufacturing Company (TSMC). Analysts from Morgan Stanley (NYSE:MS) and JPMorgan (NYSE:JPM) released positive notes regarding TSMC, contributing to bullish sentiment surrounding ASML.
ASML stands as Europe's third most valuable company, with a market capitalization of 390 billion euros. Investors are anticipating upcoming financial disclosures from both ASML and TSMC. Meanwhile, the former CEO of ASML, Peter Wennink, shared insights on the ongoing US-China chip dispute, anticipating its persistence.
In the political sphere, Congress member Marjorie Taylor Greene recently invested in ASML, among other companies, according to the latest congressional trade report. In financial analysis, Deutsche Bank (ETR:DBKGn) maintained a Buy rating on ASML, raising the price target on the stock, indicating strong confidence in the company's financial prospects.
These recent developments highlight ASML's significant role in the chipmaking industry and its influence on the global market.
InvestingPro Insights
As ASML Holdings (NASDAQ:ASML) gears up for its earnings release, insights from InvestingPro reveal a company with a robust market presence and strong financial metrics. With a market capitalization of $433.77 billion and a high P/E ratio of 56.05, ASML is trading at a significant earnings multiple, which underscores its position as a prominent player in the Semiconductors & Semiconductor Equipment industry. This high valuation is further supported by a consistent revenue growth of 7.04% over the last twelve months as of Q1 2024, showcasing the company's ability to expand its financial footprint in a competitive sector.
InvestingPro Tips highlight ASML's ability to maintain dividend payments for 18 consecutive years, indicating a stable return to shareholders. Additionally, the company's cash flows are strong enough to sufficiently cover interest payments, suggesting a healthy financial structure. With a moderate level of debt, ASML appears to be managing its financial leverage effectively. For investors seeking more in-depth analysis, there are over 15 additional InvestingPro Tips available, which can be accessed with a subscription. By using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering valuable insights to inform investment decisions.
While ASML's high valuation multiples, such as the P/E and Price/Book ratios of 55.95 and 28.83 respectively, indicate a premium market position, the company's performance justifies the investor confidence. With a strong return over the last decade and a significant price uptick over the last six months, ASML's stock has demonstrated resilience and growth, aligning with Cantor's optimistic outlook for the company's near-term performance.
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