On Friday, Stifel, a financial services company, downgraded SUSS MicroTec SE (SMHN:GR) from Buy to Hold, adjusting the price target to €60.00 from the previous €70.00. The decision comes as a direct response to the reduced guidance for 2025 provided by ASML (AS:ASML), which is anticipated to adversely affect the photomask business of SUSS MicroTec.
The downgrade was accompanied by a revision of the firm's earnings estimates for SUSS MicroTec. According to Stifel, the stock is now valued at 29 times its projected earnings for 2025, which is considered to be a full valuation. The firm's analysis suggests that earnings upgrades for SUSS MicroTec are likely to stall.
Stifel's revised forecasts indicate a top-line reduction of approximately 6% for the year 2025. This revision has further led to a significant anticipated decrease in earnings per share (EPS) for the following year, with a projected 16% cut.
The photomask segment, which is highlighted as the most profitable over the cycle for SUSS MicroTec, is expected to experience the most significant margin impacts. These impacts are projected to be disproportionately felt across the group level, influencing the overall performance of the company.
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