Nomuara Equity Research’s Carmen Boyero today cut his rating on shares of ASML Holding NV (ASML) on the heels of the company’s $4.1 billion investment proposal from Intel (INTC) earlier in the week, writing that after a 22% rise this year, the stock should consolidate despite a decent outlook.
The company’s deal with Intel will likely draw other customer investments, he thinks, and it makes the company’s dominance in lithography more secure, he thinks.
But for the moment that would lead to share price appreciation, he thinks:
We expect ASML�s share price to consolidate at current levels. Despite recent downward revisions of other SPE players, we continue to see a solid investment environment in Logic but believe this is now reflected in price. We expect Q2 results to meet expectations, and see limited scope for incremental disclosures to move market estimates materially higher. We see scope for Memory to recover in 2013 from current underspending, which could provide some upside to current low expectations. But with a deteriorating macro environment, we believe it will take time before positive signs emerge and confidence increases.
ASML shares today are up 30 cents, or 0.6%, at $50.79.
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