ASML Holding's analyst price target has been raised slightly, moving from approximately €938 to €942. Analysts cite stronger quarterly results, rising industry optimism, and improved earnings prospects driven by higher expected revenue growth and profit margins.

Analyst Commentary

Following ASML's latest quarterly results, analysts remain active in revising their outlook and expectations for the company. Their assessments indicate both confidence about ASML's growth trajectory, as well as some reservations about future industry challenges.

• Bullish analysts have significantly raised their price targets into the €1,000 to €1,100 range, reflecting growing optimism about future growth and the company's strategic positioning.
• Recent results continued to confirm improved sentiment in the semiconductor equipment sector, encouraging expectations for further revenue and margin expansion.
• ASML is anticipated to benefit from increasing memory spending, especially in the DRAM segment, with growth projected for 2026 and beyond.
• Optimism is bolstered by raised estimates for upcoming earnings, including higher gross margins, better operating efficiency, and strong anticipated demand for advanced lithography systems.

• Some analysts urge caution regarding near-term growth, citing soft guidance for the upcoming year and ongoing uncertainties in customer spending cycles.
• Mixed views persist about the immediate impact of external factors, such as macroeconomic pressures and regulatory risks related to specific end markets.
• There is concern that investor expectations may already incorporate a large portion of ASML's medium-term potential, limiting upside if industry conditions become less favorable.
• One major brokerage recently downgraded the stock to a neutral rating, highlighting the possibility of slower growth in the next twelve months despite robust long-term opportunities.

What's in the News

• Berenberg raised its price target for ASML to EUR 1,050 from EUR 735, maintaining a Buy rating and citing strong Q3 results and favorable positioning to benefit from DRAM spending growth in 2026 and beyond (Berenberg).
• Deutsche Bank lifted its price target on ASML to EUR 1,000 from EUR 900, following solid quarterly results and continued investor confidence (Deutsche Bank).
• Morgan Stanley increased ASML's price target to EUR 975 from EUR 950, reiterating an Overweight rating on the shares (Morgan Stanley).
• ASML is set to become the top shareholder of AI startup Mistral AI with a EUR 1.3 billion commitment and will obtain a board seat. This further strengthens its strategic position in AI (Reuters).
• U.S. officials are urging Taiwan to increase its investment in American chip production, with significant implications for global semiconductor supply chains in which ASML is a key player (Bloomberg).

Valuation Changes

• Fair Value has risen slightly, moving from €937.5 to €941.9 per share.
• Discount Rate has increased marginally, from 7.99% to 8.03%.
• Revenue Growth assumptions have edged higher, now at 9.04%, compared to the prior 8.60%.
• Net Profit Margin projections are up modestly, rising from 31.16% to 31.58%.
• Future P/E expectations have decreased slightly, with estimates moving from 34.0x to 33.3x.