Following Tuesday's bloodbath in the U.S. semiconductor sector, there seems to be no relief in sight as Swiss investment bank UBS downgraded ASML Holding NV (NASDAQ:ASML) from Buy to Neutral Wednesday, slashing its price target on the Dutch chipmaker due to expected slower earnings growth in the coming years.
Despite ASML being recognized as one of Europe’s top technology companies, UBS analysts led by Francois-Xavier Bouvignies said "investors will likely be less willing to pay the premium multiple that the Dutch chipmaker has commanded over the last few years."
UBS first rated ASML as a Buy in August 2022 and maintained it until now. In April 2024, the bank raised the 12-month price target for the company from 880 euros ($972.87) to 1,050 euros. On Wednesday, UBS lowered the price target to 900 euros. The downgrade comes as UBS anticipates weaker earnings growth driven by a slowdown in demand for advanced semiconductor chips.
Shares of ASML dropped 6.1% in Amsterdam trading, while U.S.-listed ADRs were 4.4% lower during premarket trading in New York.
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Slower Growth Ahead For ASML?
UBS forecasts that ASML's earnings per share will ...
