ASML Continues To Execute, And The Sell-Side Keeps Pushing Higher Targets

From time to time you’ll see sell-side analysts put themselves through contortions that would make an acrobat reach for the Advil, and that often happens when they feel the need to justify ever-higher price targets for strong operating stories that have already breached prior targets. That seems to be the case today with ASML (ASML), as the sell-side has defended a lower 2021 outlook from this highly-valued semiconductor equipment supplier as “providing certainty and confidence”.

Let me be clear – I love ASML’s business and would be happy to own it at the right price. I just think it’s interesting to see how other analysts will justify their price targets when valuation gets extreme. I found these shares too expensive last quarter and they have since underperformed the NASDAQ and the SOX, and have actually declined a bit. Although the shares certainly aren’t a bargain by conventional means, it’s a name to watch if this recent tech correction accelerates.

 

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ASML Continues To Execute, And The Sell-Side Keeps Pushing Higher Targets