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According to a research report published by Bank of America Securities, Asmack's management revealed during the second quarter results conference call that it will adopt a higher value pricing strategy. According to estimates, every 5% increase in the average sales price of the product can drive an increase of about 8% in earnings per share, while the investment cost rises by about 2.5%; if the product price increases by 5% and the cost remains unchanged, the incremental contribution to profit can reach about 10%. Based on conservative assumptions, the bank predicts that the average sales price of Asmack products will increase by about 5% in 2028, while the cost is expected to rise by about 2.5%, and the 2028 revenue and earnings per share forecasts were raised by 8.7% and 13%, respectively, to 76.57 billion euros and 85.2 euros. The relevant adjustments mainly reflect an increase in DUV, EUV and IBM product pricing by about 5%, an increase in EUV shipments from 110 units to 120 units, and the increase in dry-type machine shipments from 190 units to 210 units, partly offset by an increase in investment costs. The bank reaffirmed Asmack's “buy” rating and preferred stock status. The target price was raised from 2,452 euros to 2,557 euros, and the ADR target price was raised accordingly to 2,915 US dollars.
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According to a research report published by Bank of America Securities, Asmack's management revealed during the second quarter results conference call that it will adopt a higher value pricing strategy. According to estimates, every 5% increase in the average sales price of the product can drive an increase of about 8% in earnings per share, while the investment cost rises by about 2.5%; if the product price increases by 5% and the cost remains unchanged, the incremental contribution to profit can reach about 10%. Based on conservative assumptions, the bank predicts that the average sales price of Asmack products will increase by about 5% in 2028, while the cost is expected to rise by about 2.5%, and the 2028 revenue and earnings per share forecasts were raised by 8.7% and 13%, respectively, to 76.57 billion euros and 85.2 euros. The relevant adjustments mainly reflect an increase in DUV, EUV and IBM product pricing by about 5%, an increase in EUV shipments from 110 units to 120 units, and the increase in dry-type machine shipments from 190 units to 210 units, partially offset by an increase in investment costs. The bank reaffirmed Asmack's “buy” rating and preferred stock status. The target price was raised from 2,452 euros to 2,557 euros, and the ADR target price was raised accordingly to 2,915 US dollars.
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