ASML Holding N.V. (NASDAQ:ASML) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on ASML, with 21 buy, four strong-buy, four hold and three sell ratings among 32 brokerages. The average 12-month price target is $1,970.33.
• ASML reported quarterly revenue of $10.64 billion and EPS of $8.65, while its shares trade at about 48 times earnings after gaining 124.3% over the past year, raising valuation concerns.
• Investors are weighing strong structural demand for ASML’s advanced EUV systems against risks from China’s developing immersion DUV alternatives and export restrictions, though analysts say ASML’s EUV monopoly remains a major competitive advantage.

ASML Holding N.V. (NASDAQ:ASML - Get Free Report) has been assigned an average rating of "Moderate Buy" from the thirty-two brokerages that are currently covering the firm, Marketbeat reports. Three analysts have rated the stock with a sell rating, four have assigned a hold rating, twenty-one have given a buy rating and four have given a strong buy rating to the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $1,970.3333.

ASML has been the topic of a number of recent research reports. Zacks Research downgraded ASML from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 3rd. Barclays reiterated an "overweight" rating on shares of ASML in a report on Thursday, July 16th. Morgan Stanley reissued an "overweight" rating on shares of ASML in a research report on Tuesday, July 7th. Jefferies Financial Group restated a "neutral" rating on shares of ASML in a report on Monday, June 1st. Finally, Sanford C. Bernstein lifted their price objective on shares of ASML from $1,971.00 to $2,623.00 and gave the stock an "outperform" rating in a research report on Monday, July 6th.

Hedge Funds Weigh In On ASML

Large investors have recently made changes to their positions in the business. Baron Wealth Management LLC grew its stake in ASML by 1.8% during the 2nd quarter. Baron Wealth Management LLC now owns 333 shares of the semiconductor company's stock worth $662,000 after buying an additional 6 shares during the last quarter. Whitener Capital Management Inc. raised its stake in ASML by 2.8% in the second quarter. Whitener Capital Management Inc. now owns 218 shares of the semiconductor company's stock valued at $434,000 after buying an additional 6 shares during the last quarter. Family Capital Management Inc. boosted its holdings in ASML by 0.8% in the fourth quarter. Family Capital Management Inc. now owns 919 shares of the semiconductor company's stock worth $983,000 after acquiring an additional 7 shares in the last quarter. 44 Wealth Management LLC boosted its holdings in ASML by 1.1% in the fourth quarter. 44 Wealth Management LLC now owns 657 shares of the semiconductor company's stock worth $703,000 after acquiring an additional 7 shares in the last quarter. Finally, Evolution Wealth Management Inc. grew its stake in shares of ASML by 22.6% during the first quarter. Evolution Wealth Management Inc. now owns 38 shares of the semiconductor company's stock worth $50,000 after acquiring an additional 7 shares during the last quarter. 26.07% of the stock is owned by institutional investors and hedge funds.

ASML News Roundup

Here are the key news stories impacting ASML this week:

• Positive Sentiment: Bank of America described the selloff as an overreaction, arguing that China’s emerging immersion DUV equipment poses limited near-term financial risk. ASML retains a monopoly in the more advanced EUV market, which is essential for leading-edge AI and smartphone chips. Bank of America sees ASML as resilient amid China concerns
• Positive Sentiment: Recent coverage continues to highlight strong structural demand for ASML’s systems as chipmakers expand AI, advanced-logic and memory production. Its high-end lithography tools are viewed as critical infrastructure for the AI semiconductor boom. Explainer: The ASML printers key for the AI chip boom
• Neutral Sentiment: Technical analysts say ASML is testing major support after a substantial advance. Holding that zone could support a renewed bullish trend, while a breakdown would raise the risk of a deeper pullback. ASML price forecast and support analysis
• Negative Sentiment: Reports that a Chinese state-backed company has begun mass production of immersion DUV lithography machines triggered concern that domestic alternatives could eventually reduce ASML’s sales in China, an important market for its less-advanced DUV systems. Export restrictions already threaten that business. China starts production of home-grown immersion DUV tools
• Negative Sentiment: Valuation concerns are adding to the pressure: ASML has gained 124.3% over the past year and trades at roughly 48 times earnings, leading investors to question whether AI-related demand and future growth are already reflected in the share price. Has ASML priced in too much AI demand?

ASML Stock Performance

Shares of NASDAQ:ASML opened at $1,550.69 on Thursday. The firm has a 50 day moving average of $1,761.09 and a 200 day moving average of $1,534.62. The company has a quick ratio of 0.80, a current ratio of 1.33 and a debt-to-equity ratio of 0.09. The company has a market capitalization of $609.86 billion, a price-to-earnings ratio of 48.25, a price-to-earnings-growth ratio of 0.81 and a beta of 1.78. ASML has a 52 week low of $683.48 and a 52 week high of $1,999.96.

ASML (NASDAQ:ASML - Get Free Report) last announced its earnings results on Sunday, June 28th. The semiconductor company reported $8.65 earnings per share (EPS) for the quarter. The business had revenue of $10.64 billion for the quarter. ASML had a return on equity of 52.71% and a net margin of 30.11%. On average, sell-side analysts predict that ASML will post 43.6 earnings per share for the current fiscal year.

ASML Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 5th. Shareholders of record on Tuesday, July 28th will be paid a $2.1507 dividend. This represents a $8.60 annualized dividend and a yield of 0.6%. The ex-dividend date is Tuesday, July 28th. ASML's dividend payout ratio (DPR) is 22.74%.

ASML Company Profile

ASML Holding N.V. NASDAQ: ASML is a Dutch company that develops, manufactures and services advanced photolithography systems used to produce semiconductor chips. Headquartered in Veldhoven, Netherlands, ASML supplies capital equipment and associated software and services that enable semiconductor manufacturers to pattern the intricate circuits on silicon wafers. The company is widely recognized for its leadership in extreme ultraviolet (EUV) lithography as well as its deep ultraviolet (DUV) platforms used across multiple process nodes.

ASML's product portfolio includes EUV and DUV lithography machines, light sources, imaging optics and control software, together with spare parts, upgrades and field services.

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