) to buy from neutral.
Analyst Andrew Griffin says a pick-up in chip-equipment spending by customers is now much closer to reality, and should provide a positive catalyst in the next six months. He calls ASML his favorite pure-play in the chip sector. He says the strengthening yen is positive for the company, as its only competitors are Japanese; this provides a hedge against further strength in the euro vs. the dollar, unlike other European semiconductor plays.
Griffin says ASML trades at a substantial discount to U.S. peers on sales and asset multiples. He narrowed the 2003 estimate for a 35 euro cents loss per share to a 32 euro cents loss, and raised the 30 euro cents 2004 earnings per share estimate to 34 euro cents. He has a $16.74 target.