Update shared on08 Oct 2025
Fair value Increased 2.08%ASM International's analyst price target has increased to €583.30 from €571.40, as analysts adjust expectations based on updated profit margin outlooks and recent changes in industry demand forecasts.
Analyst Commentary
Recent street research highlights a range of perspectives among analysts regarding ASM International's outlook, with both upward and downward adjustments to price targets in response to evolving market dynamics and company performance.
Bullish Takeaways- Bullish analysts cite increased confidence in ASM International's ability to improve profit margins. This has prompted them to revise price targets upward in select cases.
- Expectations for long-term growth remain robust. Several analysts maintain buy or overweight ratings despite fluctuations in short-term outlooks.
- Ongoing innovation and execution in core business areas are viewed as supportive of premium valuation multiples for the company.
- Some forecasts anticipate that ASM International will benefit from structural growth drivers in semiconductor capital spending over the coming years.
- Bearish analysts have expressed concerns about order volatility, particularly noting the company's order miss in the second quarter. This has led to downward revisions of price targets.
- There is increased caution regarding the company's ability to deliver on its 2026 organic growth targets given recent industry headwinds.
- Short-term demand uncertainty in the broader semiconductor industry contributes to a more conservative outlook among some analysts.
- Execution risk remains a watchpoint, with potential challenges in maintaining elevated profit margins if industry demand continues to fluctuate.
What's in the News
- ASM International NV lowered its revenue guidance for the fourth quarter and full year of 2025, citing weaker demand in leading-edge logic/foundry and power/wafer/analog markets. Revenue in the second half of 2025 is now expected to be 5% to 10% lower than the first half at constant currencies, placing full-year growth at the lower end of previous forecasts (Key Developments).
- The company confirmed its revenue guidance for the third quarter of 2025, updated its 2027 revenue target for currency impacts to EUR 3.7 billion to EUR 4.6 billion, and set a new revenue goal of more than EUR 5.7 billion by 2030 (Key Developments).
- ASM International completed share repurchases totaling 322,533 shares, representing 0.66% of total shares, for €150 million between April and July 2025 under its previously announced buyback program (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen from €571.40 to €583.30, reflecting a modest increase in expected valuation.
- Discount Rate has increased slightly from 7.93% to 8.00%, indicating a marginally higher assumed risk in the valuation model.
- Revenue Growth projections have fallen noticeably from 11.97% to 10.13%, signaling lower expectations for future top-line expansion.
- Net Profit Margin has improved from 24.32% to 25.12%, suggesting stronger anticipated profitability.
- Future P/E Ratio has increased from 31.60x to 32.88x, which points to higher valuation multiples being applied based on forward earnings.
Disclaimer
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