Share prices of ASML (NASDAQ: ASML) have surged to new highs this year, as the growth outlook for the semiconductor industry improves. analyst Sandeep Deshpande maintained an overweight (buy) rating on the stock with a $1,200 price target. That suggests a nearly 23% price gain over the next 12 months from the current share price of $979.

Several chip companies have recently reported improving growth with solid near-term forward guidance. The recovery underway across the industry could cascade to ASML.

Almost every analyst that covers ASML rates the stock a buy, and for good reason. The company has delivered solid revenue growth despite an industry that is still recovering from macroeconomic headwinds.

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Source Fool.com