UBS upgrades ASML to Buy, sees "quality compounder" return with 19% upside potential.

UBS upgraded ASML's stock to Buy, citing the semiconductor equipment maker's potential return as a "quality compounder" after a period of underperformance. The bank raised its price target to €750 from €660, implying a 19% upside from the stock's last close. UBS expects a turning point in 2027, driven by the production ramp of TSMC's A14 logic node and fading uncertainty around Intel and Samsung.

UBS Group has upgraded its rating on ASML Holding NV (AMS:ASML) to "Buy" and raised its price target to €750, citing the semiconductor equipment maker's potential as a "quality compounder" after a period of underperformance. The bank's upgrade follows recent analyst upgrades from Morgan Stanley and Royal Bank of Canada, who have also raised their price targets and changed their ratings on ASML. Despite the positive outlook, ASML's stock fell by 3.05% in pre-market trading on September 2, 2025, despite Bank of America's Buy rating and €724 price target.

The upgrade comes as ASML continues to demonstrate strong long-term potential. The company's consensus rating is a "Moderate Buy," with a mix of buy and hold ratings from various analysts. ASML's valuation, based on its Price-To-Earnings Ratio, suggests it is good value compared to its estimated Fair Price-To-Earnings Ratio. The company remains attractive for investors due to its competitive position in the semiconductor equipment sector and growth outlook.

UBS expects a turning point for ASML in 2027, driven by the production ramp of TSMC's A14 logic node and fading uncertainty around Intel and Samsung. The bank's upgrade follows recent analyst upgrades from Morgan Stanley and Royal Bank of Canada, who have also raised their price targets and changed their ratings on ASML.

ASML's stock has experienced a slight downturn, trading down 3.05% on September 2, 2025, hitting €724.00. The company has a market capitalization of €142.6 billion, a P/E ratio of 37.53, and a debt-to-equity ratio of 0.32. The firm's 50-day and 200-day simple moving averages are €699.99 and €670.00, respectively.

Despite the recent price drop, ASML Holding remains a strong contender in the semiconductor equipment sector. The company's valuation, based on its Price-To-Earnings Ratio, suggests it is good value compared to its estimated Fair Price-To-Earnings Ratio. This, combined with its strong long-term prospects, makes it an attractive option for investors.

References:
[1] https://www.ainvest.com/news/asml-holding-drops-3-05-buy-rating-2509/
[2] https://www.digitimes.com/news/a20250904PD216/tsmc-nanjing-fab-equipment-28nm-2025.html