DBS analyst Ling Lee Keng has maintained their bullish stance on 0QB8 stock, giving a Buy rating today.
Ling Lee Keng’s rating is based on ASML’s dominant position in the semiconductor lithography market, where it holds a monopoly, particularly in the extreme ultraviolet (EUV) segment. This monopoly status provides ASML with significant bargaining power and sets a high barrier for potential competitors, ensuring its continued market leadership. Additionally, the global trend towards de-globalization in semiconductor manufacturing is expected to increase demand for ASML’s lithography machines, as countries seek to localize their semiconductor production.
ASML’s strong financial performance, characterized by impressive returns on invested capital and a robust track record of capital deployment, further supports the Buy rating. The company’s ongoing investments in research and development have consistently yielded positive results, and its projections for future revenue and gross margins are optimistic. Despite potential geopolitical risks and supply chain disruptions, ASML’s strategic positioning and technological advancements make it a compelling investment opportunity.
In another report released today, Barclays also maintained a Buy rating on the stock with a €770.00 price target.