ASML Orders Down 53% QoQ, TD Cowen Lowers Price Target From Investing.com

On Thursday, TD Cowen adjusted its price target for ASML Holding NV (AS::NA) (NASDAQ: ASML) to €825.00, a reduction from the official target of €1,050.00. Despite the cut, the firm maintained its buy rating on the stock. The adjustment came after ASML reported results for the third that fell short of market expectations.

ASML’s third quarter order intake fell significantly to €2.6 billion, a decline of 53% quarter-on-quarter. This slump was a major factor in TD Cowen’s revaluation. Additionally, revenue and gross margin forecasts for calendar year 2025 have been revised downwards, with new forecasts of €32.5 billion in revenue and 52% in gross margin (midpoint of the range).

The revised forecast for calendar year 2025 takes into account several factors that contribute to a less optimistic outlook. These include a reduction in the expected number of low-NA EUV units, which TD Cowen estimates at 48 units, a lower share of sales from China of approximately 20% of total sales and gross margin headwinds.

As a result, TD Cowen lowered its estimate for ASML’s earnings per share (EPS) to €23.00.

ASML’s next Capital Markets Day on November 14 could provide further insight into the company’s plans and performance expectations for the 2026 calendar year. TD Cowen suggested that additional details presented during this event could potentially have a positive impact on share price performance.

InvestingPro Insights

Recent data from InvestingPro sheds additional light on ASML’s current market position and financial health. Despite TD Cowen’s recent price target cut, ASML maintains a strong market presence with a sizable market cap of $269.66 billion. The company’s price-to-earnings (P/E) ratio is 35.82, reflecting investors’ expectations for future growth despite recent challenges.

InvestingPro Tips highlights that ASML is a prominent player in the semiconductor and semiconductor equipment industry, which is consistent with the article’s focus on the company’s importance in this sector. Additionally, ASML has paid dividends for 18 consecutive years, underscoring the company’s commitment to shareholder returns even in difficult times.

The company’s financial indicators show a mixed picture. While ASML’s revenue reached $29.30 billion over the last twelve months, the company experienced a slight decline of 1.92% during that period. The company maintains a robust gross margin of 51.15%, indicating strong pricing power and operational efficiency.

It is worth noting that the ASML share price has recently taken a significant hit, with a total return of -26.55% over three months. This is consistent with the disappointing third quarter results and reduced guidance mentioned in the article. However, the current share price is 61.73% of its 52-week high, indicating potential for recovery.

Investors seeking more comprehensive insights can access InvestingPro Tips, with 15 additional tips for ASML available on the platform. These tips could provide valuable context for understanding the company’s future prospects in light of recent developments.

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