The Dutch Chip-Gear Maker May Face Tougher 2024 Than Peers

Nov 22, 2023 thejournalbiz

ASML is heading for a tough year, according to Redburn Atlantic which sees potential for 4% sales decline in 2024

Broker has only sell rating and lowest price target on the stock

Tweet on Grim chip forecast by Redburn Consultancy

ASML Holding NV’s most bearish analyst Redburn Atlantic is forecasting a more challenging 2024 for the Dutch firm than for any of its chip-equipment peers, via Bloomberg#asml #chip #semiconductors pic.twitter.com/14Wwr2tohW

— The_Journalbiz (@the_journalbiz) November 22, 2023

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ASML could see a 4% sales decline in 2024, compared with an average growth of 5% among six US and European chip-tool makers.

ASML Holding NV’s most bearish analyst is sticking to his lone sell call, forecasting a more challenging 2024 for the Dutch firm than for any of its chip-equipment peers.

After delivering some of the strongest sales growth in the sector in 2023, Europe’s most valuable technology company will see “a more painful capacity digestion phase than its peers,” said Redburn Atlantic’s Timm Schulze-Melander.

ASML could see a 4% sales decline in 2024, compared with an average growth of 5% among six US and European chip-tool makers, according to Schulze-Melander, who has the only sell rating on the stock among the 43 analysts tracked by Bloomberg.

An oversupply of lithography machines in China and tempered production capacities at chipmakers could weigh on sales, he wrote in a note