Credit Suisse Rates ASML At Outperform (ASML)

Credit Suisse rates ASML Holding N.V. (ADR)

at Outperform, as it believes in the PC shipment story through next year. In the research report, Credit Suisse writes, "Bottom line: We remain constructive on ASML as we believe: (i) Despite mid-summer weakness in PCs and current worries on DRAM price declines, shipment trends at ASML remain intact through mid-2011 - this we think is fundamentally consistent with our thesis that aggregate sell-through trends still remain supportive near term and semi capital intensity needs to increase longer term; (ii) ASML continues to gain share at Intel with new orders in 2H10, and is starting to see new orders from Toshiba for the first time since 2008; (iii) Our current CY11 EPS of Eu2.67 is above consensus at Eu2.18 and we think the stock is worth Eu30, assuming 12x our 3-year CY10-12 average earnings power of Eu2.5." Shares of ASML lost 76 cents yesterday to close at $29.73, a loss of 2.5%.