ASML shares – Believing in its long-term potential

ASML was always a top holding in the Calamatta Cuschieri Euro Equity Fund and we continue to believe in the long-term story of the Group. Shares of ASML are up 180% over a period of 5-years. ASML does not seem to be slowing down anytime soon as it reported excellent results for Q118. We have reviewed our model and maintained our price target of €200. The price target reflects our increased optimism that the Group is very close to meet its 2020 target sales figure. However, what is even more attractive about this company is that management is expecting growth to really kick in post 2020 where the company expects to see strong demand for its Extreme ultraviolet lithography (EUV) technology. Rationale for our recommendation: Forecasted sales – Our forecasted sales for 2018 are close to the company’s target for 2020 (even those of the market in general). In fact, we would not be surprised if in the second half of 2018, ASML would decide to hold an investor event to update targets for 2020 but also potentially set the target for 2025. Historically, the market has been willing to take a long-term view on ASML and updating the 2020 target and setting an expectation for 2025 would help...