Why ASML Holding NV (ADR) have been downgraded?

ASML Holding NV (ADR) (NASDAQ:ASML) received a stock rating downgrade from Exane BNP Paribas on Mar-31-16. In a note to investors, the firm issued an Underperform rating. The analysts previously had a Neutral rating on the stock.

Analysts have a consensus target price of $104.56 in the 12-month period. The price objective is 4.15% higher than the recent closing price of $100.39. The 52-week price range is $77.17-$114.14 and the company has a market capitalization of $43.37 billion. Analysts covering the shares maintain a consensus Strong Buy rating, according to Zacks Investment Research. Zero analyst has rated the stock with a sell rating, 3 has assigned a hold rating, Zero says it’s a buy, and 5 have assigned a strong buy rating to the company.

ASML Holding NV (ADR) (ASML) on February 22, 2016 announced a partnership with Nippon Control System Corporation (NCS) to integrate their products from optical proximity correction (OPC) to mask data preparation (MDP) on a common platform, delivering improvements in mask tape-out productivity and patterning performance in wafer fabrication. Semiconductor manufacturers will now be able to deploy ASML`s computational lithography products and NCS` MDP products into a seamless process flow for a faster and more accurate design to mask (D2M) solution.

The collaboration addresses the challenges customers are facing in mask tape-out and wafer patterning driven by growing mask complexity with shrinking process nodes in both multiple patterning and EUV applications. Specific integration examples and benefits include:

• A complete MDP flow to identify and improve mask accuracy required for pattern fidelity, critical dimension uniformity (CDU) and overlay performance;


• A seamless processing and handling of large volumes of data between OPC and MDP operations to reduce cycle time and optimize productivity, while maximizing utilization of available computing resources.

“By connecting ASML`s OPC and NCS` MDP in an integrated tape-out flow, we have efficiently utilized computing clusters and greatly reduced our design to mask cycle time,” said Laurent Tuo, Fellow and Technical Director at TSMC. “Such connectivity also enables mask process enhancements based on OPC output to deliver better imaging performance and more robust process window.”

An integrated OPC and MDP solution is of greater importance for EUV lithography. “Mask proximity effects are stronger with electron back scattering from the multi-layer mask stack composed of heavy metal elements,” said Nobuyasu Horiuchi, President of NCS. “An integrated EUV MDP solution flow will help accurately model and correctly handle mask making and wafer imaging processes that impact CDU in EUV lithography.”

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