ASML (NASDAQ:ASML) Trading 1.8% Higher After Analyst Upgrade

Key Points

• ASML shares rose 1.8% after JPMorgan Chase & Co. lifted its price target to $2,200 from $1,813 and reiterated a buy rating. The stock traded above its prior close on heavier-than-normal volume.
• JPMorgan also suggested ASML’s earnings estimates may need to move higher, citing the company’s indication that it has more flexible EUV manufacturing capacity than previously guided. That points to potentially stronger demand or supply capability ahead.
• Broader sentiment remains constructive, with multiple analysts and articles highlighting ASML’s role in the AI infrastructure build-out and semiconductor spending cycle. Institutional investors have also been increasing their positions in the stock.

ASML Holding N.V. (NASDAQ:ASML - Get Free Report) shares were up 1.8% during mid-day trading on Thursday after JPMorgan Chase & Co. raised their price target on the stock from $1,813.00 to $2,200.00. JPMorgan Chase & Co. currently has a buy rating on the stock. ASML traded as high as $1,779.29 and last traded at $1,757.47. Approximately 2,241,947 shares were traded during mid-day trading, an increase of 25% from the average daily volume of 1,799,870 shares. The stock had previously closed at $1,726.36.

A number of other equities analysts have also recently issued reports on the stock. Freedom Capital raised shares of ASML from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 16th. Wall Street Zen cut ASML from a "buy" rating to a "hold" rating in a research note on Sunday, May 3rd. Barclays raised ASML to a "buy" rating in a research note on Tuesday, May 19th. The Goldman Sachs Group reissued a "buy" rating on shares of ASML in a research note on Wednesday, May 13th. Finally, Morningstar cut ASML to a "sell" rating in a research note on Wednesday, May 27th. Three research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $1,589.63.

Key ASML News

Here are the key news stories impacting ASML this week:

• Positive Sentiment: JPMorgan lifted its price target on ASML to $2,200 from $1,813 and kept a buy rating, signaling meaningful upside potential for the stock. JPMorgan raises ASML price target
• Positive Sentiment: JPMorgan also said ASML’s future earnings estimates may need to rise as the company has indicated more flexible EUV manufacturing capacity than previously guided. JP Morgan raises ASML estimates as chipmaker signals it can supply far more EUV tools than previously guided
• Positive Sentiment: Several articles pointed to ASML benefiting from the AI infrastructure build-out and broader semiconductor spending cycle, which supports the long-term demand outlook for its lithography equipment. ASML Holding N.V. (ASML) Gains from AI infrastructure Build Out
• Neutral Sentiment: ASML has also been identified as a “wide-moat” stock and a trending name among investors, reflecting strong market interest but not a new fundamental catalyst. Top Wide-Moat Stocks to Buy for Steady Long-Term Returns
• Neutral Sentiment: Some recent commentary focused on valuation after the stock’s strong short-term momentum, suggesting investors are debating whether the rally is already pricing in a lot of the good news. Assessing ASML Holding ENXTAM: ASML Valuation After Strong Short Term Share Price Momentum
• Negative Sentiment: No major negative company-specific developments were reported in the latest batch of articles, so downside pressure appears limited for now.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Fisher Asset Management LLC boosted its position in shares of ASML by 3.0% during the fourth quarter. Fisher Asset Management LLC now owns 4,484,949 shares of the semiconductor company's stock valued at $4,798,268,000 after buying an additional 132,353 shares during the last quarter. Capital International Investors boosted its position in shares of ASML by 17.3% during the third quarter. Capital International Investors now owns 3,919,154 shares of the semiconductor company's stock valued at $3,791,982,000 after buying an additional 577,448 shares during the last quarter. Van ECK Associates Corp boosted its position in shares of ASML by 16.6% during the third quarter. Van ECK Associates Corp now owns 2,148,506 shares of the semiconductor company's stock valued at $2,079,948,000 after buying an additional 305,435 shares during the last quarter. Bank of America Corp DE boosted its position in shares of ASML by 8.3% during the third quarter. Bank of America Corp DE now owns 1,865,254 shares of the semiconductor company's stock valued at $1,805,733,000 after buying an additional 142,763 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in shares of ASML by 6.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,641,565 shares of the semiconductor company's stock valued at $2,168,227,000 after buying an additional 96,860 shares during the last quarter. Hedge funds and other institutional investors own 26.07% of the company's stock.

ASML Stock Up 1.8%

The stock has a fifty day moving average of $1,478.55 and a 200 day moving average of $1,333.83. The firm has a market capitalization of $691.18 billion, a P/E ratio of 63.04, a price-to-earnings-growth ratio of 1.40 and a beta of 1.82. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.36 and a quick ratio of 0.78.

ASML (NASDAQ:ASML - Get Free Report) last issued its quarterly earnings results on Monday, March 30th. The semiconductor company reported $8.28 EPS for the quarter. The business had revenue of $10.15 billion for the quarter. ASML had a return on equity of 48.69% and a net margin of 27.65%. On average, research analysts anticipate that ASML Holding N.V. will post 37.1 EPS for the current fiscal year.

About ASML

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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