BofA Keeps ASML at Buy After Q2 Results Beat, FY26 Guidance Upgrade

BofA Global Research on Wednesday maintained its buy rating on ASML (ASML.AS) as the Dutch semiconductor equipment maker upgraded its full-year 2026 guidance following stronger-than-expected second-quarter results. The company reported 9.33 billion euros in revenue, up 21% on a yearly basis and 6% ahead of Visible Alpha consensus. Gross margin and EPS came in at 54% and 7.6 euros, both higher than market forecasts of 51.9% and 6.8 euros, respectively. "ASML highlighted a robust end-market outlook, forecasting 25% logic growth in 2026, driven by strong 2nm demand and 1.4nm pull-in (positive ASM), alongside 75% growth in memory sales. China to represent c.20% of group sales, above prior expectations, led by stronger logic-related demand," the research firm said in a note. "Our Buy rating is predicated on 1) our long-term forecasts calling for high-teens revenue CAGR and high-twenty percent EPS CAGR over the next 5 years, 2) higher litho intensity in DRAM, and 3) potential upside to ASML's 2030 targets from AI and stronger industry demand," BofA analysts wrote. The price objective for the stock stands at 2,022 euros.