UBS: ASML May Raise Expectations Again

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On July 1, UBS analysts wrote in a report to clients that ASML may raise its outlook for the year again when it announces its second-quarter results on July 15. The Dutch semiconductor manufacturing equipment supplier expects sales this year to be between 36 billion and 40 billion euros. Analysts stated that as demand for chip manufacturing equipment continues to grow, the group may adjust its expectations to the upper end of this range or possibly slightly above it. ASML anticipates a gross margin between 51% and 53%, which is a closely watched metric for pricing power and profitability. Analysts believe there is room for a moderate upward adjustment towards the upper end of this range. ASML's stock price rose by 0.5%, reaching 1,729 euros.
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