From Morningstar: 2024-10-11 10:50:00

ASML Holdings is set to report its Q3 results on October 16. Analysts are optimistic, with expectations that the company can meet its 2025 guidance with recent order numbers. Concerns about Intel’s impact will also be addressed. Morningstar gives ASML stock a €900.00 fair value estimate with a high uncertainty rating.

ASML’s economic moat rating is wide due to its market dominance in semiconductor lithography machines. The company offers both DUV and EUV lithography machines, essential for producing advanced chips. ASML is crucial for achieving Moore’s Law, but faces challenges such as customer cost-cutting and trade tensions.

Despite risks, ASML’s bulls highlight its long-lasting machines, high switching costs, and potential for gross margin improvement. Intangible assets and technological leadership give ASML a strong competitive position. Bears point out the high price of ASML’s products, reliance on a few key customers, and market volatility.



Read more at Morningstar: Going into Earnings, is ASML Stock a Buy?