The Analyst Landscape: 5 Takes On ASML Holding

Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on ASML Holding ASML in the last three months.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $1030.0, a high estimate of $1150.00, and a low estimate of $850.00. Surpassing the previous average price target of $881.00, the current average has increased by 16.91%.

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive ASML Holding is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to ASML Holding. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of ASML Holding compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for ASML Holding's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into ASML Holding's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on ASML Holding analyst ratings.

Delving into ASML Holding's Background

ASML is the leader in photolithography systems used in the manufacturing of semiconductors. Photolithography is the process in which a light source is used to expose circuit patterns from a photo mask onto a semiconductor wafer. The latest technological advances in this segment allow chipmakers to continually increase the number of transistors on the same area of silicon, with lithography historically representing a high portion of the cost of making cutting-edge chips. ASML outsources the manufacturing of most of its parts, acting like an assembler. ASML's main clients are TSMC, Samsung, and Intel.

Unraveling the Financial Story of ASML Holding

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Over the 3 months period, ASML Holding showcased positive performance, achieving a revenue growth rate of 12.55% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: ASML Holding's net margin excels beyond industry benchmarks, reaching 28.3%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): ASML Holding's ROE stands out, surpassing industry averages. With an impressive ROE of 16.1%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): ASML Holding's ROA stands out, surpassing industry averages. With an impressive ROA of 5.29%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: ASML Holding's debt-to-equity ratio is below the industry average at 0.34, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.