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Analyst Predicts a Tough 2024 for ASML (NASDAQ:ASML)
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Analyst Predicts a Tough 2024 for ASML (NASDAQ:ASML)

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A Redburn analyst said that ASML sales may be impacted by a glut of lithography equipment in China and constrained production capacity at chipmakers.

Redburn Atlantic analyst Timm Schulze-Melander on Wednesday reiterated his bearish outlook on ASML (NASDAQ:ASML), remaining unconvinced with the chipmaker’s 2023 sales boom. According to the analyst, the company will see “a more painful capacity digestion phase than its peers.”

Indeed, Schulze-Melander, who has a Sell rating on ASML, could see a 4% sales decline in 2024. He noted that sales may be impacted by a glut of lithography equipment in China and constrained production capacity at chipmakers. 

Furthermore, the analyst predicted that the company’s next-generation chipmaking equipment may face technological and financial obstacles that consensus estimates have not acknowledged. In addition, Schulze-Melander highlighted the risks of a management shuffle once the current CEO’s term expires next year.

Is ASML Stock a Buy or Sell?

With four Buys and one Hold rating, ASML commands a Strong Buy consensus rating on TipRanks. After a 26.39% decline in its share price in 2023, the average ASML price target of $721.00 per share implies 4.68% upside potential. 

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