ASML Stock Price Target Cut to $743 Amid Growth Concerns

ASML's price target has been slashed by Bernstein from $806 to $743, citing concerns over future growth. The analyst maintains a "Hold" rating despite strong Q2 results, citing uncertainty around 2026 growth and cancelled orders due to export controls. Other analysts remain confused by ASML's forecasts, with Cantor Fitzgerald maintaining a Buy rating and UBS raising its price target to EUR 660.

ASML Holding NV (ASML) has seen a mixed reaction from analysts following its Q2 2025 earnings report and revised outlook for 2026. The company reported strong financial performance with net sales of €7.7 billion and net income of €2.3 billion, surpassing market expectations [1]. However, its outlook for the coming year has been met with varying responses from analysts.

DZ Bank downgraded ASML to Hold from Buy with a new price target of EUR 655, citing reduced expectations for revenue growth due to a decline in demand for semiconductor manufacturing equipment [2]. Cantor Fitzgerald also expressed concern over the company's revised outlook, describing it as "very confusing and overall disappointing" and noting that the uncertainty in growth projections has led to a decline in share value [3]. Despite these concerns, other analysts remain more optimistic. UBS raised its price target to EUR 660, maintaining a Buy rating, while Cantor Fitzgerald maintains an Overweight rating [3].

ASML's revised outlook for 2026, from "growth year over year" to "while we still prepare for growth in 2026, we cannot confirm it at this stage," has contributed to investor uncertainty [3]. The company acknowledged that increasing macroeconomic and geopolitical uncertainties are affecting growth projections, with CEO Christophe Fouquet noting that the AI market fundamentals remain strong but the broader environment is challenging [2]. ASML has also faced challenges with customer payment dynamics and investments in fixed assets, leading to a negative free cash flow of EUR475 million in Q1 2025 [3].

Despite these challenges, ASML has reported strong demand in the AI sector and made significant progress in EUV technology [3]. The company's technological advancements, such as the shipment of the first EXE:5200B system, demonstrate its commitment to innovation in lithography technology [2]. However, the company anticipates a wider range of gross margins for Q2 2025 due to uncertainties around tariffs and their absorption in the value chain [3].

Analysts' differing views on ASML's future growth prospects highlight the volatility and uncertainty in the semiconductor industry. Investors should closely monitor ASML's progress in the coming quarters to assess the potential impact of these challenges on the company's financial performance.

References:
[1] https://www.ainvest.com/news/asml-q2-2025-earnings-numbers-meet-expectations-narrative-falters-recommendation-sell-2507/
[2] https://www.cnbc.com/2025/07/16/asml-q2-2025-earnings-report.html
[3] https://www.ainvest.com/news/asml-2026-outlook-update-confusing-disappointing-cantor-fitzgerald-2507/