DZ Bank Downgrades ASML to Hold from Buy with a EUR 655 Price Target

ASML has been downgraded to Hold from Buy by DZ Bank with a price target of EUR 655. The downgrade is based on the firm's reduced expectations for ASML's revenue growth due to a decline in demand for semiconductor manufacturing equipment.

ASML Holding NV (ASML) has been downgraded to Hold from Buy by DZ Bank, with a new price target of EUR 655. The downgrade reflects the firm's reduced expectations for ASML's revenue growth, primarily due to a decline in demand for semiconductor manufacturing equipment [1].

In its Q2 2025 earnings report, ASML reported net sales of €7.7 billion and net income of €2.3 billion, both figures surpassing market expectations. The company's gross margin of 53.7% and operating margin of 34.6% indicated strong financial performance. However, the narrative surrounding ASML's growth prospects is more nuanced [2].

Despite the strong quarterly results, ASML's guidance for the next quarter was lower than anticipated. The company expects total net sales between €7.4 billion and €7.9 billion for Q3 2025, with a gross margin between 50% and 52%. This slowdown in demand for semiconductor equipment is a concern for ASML's growth prospects. The company's CEO, Christophe Fouquet, acknowledged that the AI market fundamentals remain strong, but increasing macroeconomic and geopolitical uncertainties are affecting growth projections [2].

ASML's technological advancements, such as the shipment of the first EXE:5200B system, demonstrate the company's commitment to innovation in lithography technology. However, the company also acknowledged increasing uncertainty driven by macro-economic and geopolitical developments. CEO Christophe Fouquet stated, "At the same time, we continue to see increasing uncertainty driven by macro-economic and geopolitical developments. Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage" [2].

ASML shares have increased 19% this year but declined 23% in the last 12 months, reflecting the broader market volatility and uncertainty in the semiconductor sector [3].

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-reports-q2-net-income-1-79-billion-revenue-8-73-billion-missing-earnings-expectations-2507/