Bernstein Raises ASML Price Target to $1,642

Bernstein SocGen Group analyst David Dai raised the price target on ASML (NASDAQ: ASML) to $1,642.00 (from $1,528.00) while maintaining an Outperform rating.

“We find the DUV upside for ASML is currently overlooked. Investors usually focus more on the EUV forecasts, as it’s driving leading edge node migration and growing much faster than DUV.

However, in the current semiconductor landscape, where capacity expansion in advanced logic and DRAM is accelerating, increase in EUV shipments inherently results in additional paired DUV shipments.

We estimate that the capex spent on DUV:EUV ratio will be roughly 50:50 in the next two years, so they should both grow.

This is because in DRAM, DUV is roughly 50% of total litho, and for advanced logic DUV is ~20%, while mature logic and NAND is 100% DUV.

Consensus having EUV revenue growing EUR2.3bn but DUV revenue declining EUR 1bn next year is directionally inconsistent, in our view.”

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