ASML selloff brings long-term buying opportunity, says Barclays
Barclays analyst Andrew Gardiner views the recent pullback in shares of ASML as providing a long-term buying opportunity. ASML shares have given back their gains and are roughly flat on the year, with investor fears over a slowing memory market offsetting the positive estimate momentum seen year-to-date, Gardiner tells investors in a research note. The analyst says that while such fears are understandable given concerns over end-market demand and memory pricing, his analysis suggests they are overdone. He believes consensus expectations factoring in a 25% cut to memory spending is a worst case scenario. With limited downside to 2019 numbers, investors "should have comfort to look again to the long-term story," says Gardiner. The analyst has a Overweight rating on ASML with a price target of EUR 210.