ASML Holding Downgraded to Hold Rating by DZ BANK AG Analyst

Wednesday, Jul 16, 2025 2:50 pm ET1min read
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ASML Holding NV was downgraded to a Hold rating by DZ BANK AG, citing a Moderate Buy consensus rating and a €754.40 average price target, representing a 6.95% upside. The company reported a quarterly revenue of €7.74 billion and a net profit of €2.36 billion for the quarter ending March 31.

ASML Holding NV, a leading supplier of semiconductor manufacturing equipment, has been downgraded to a Hold rating by DZ BANK AG. The downgrade comes despite the company's recent strong financial performance and a Moderate Buy consensus rating from analysts. DZ BANK AG cited a €754.40 average price target, representing a 6.95% upside, as a reason for the downgrade.

The company reported a quarterly revenue of €7.74 billion and a net profit of €2.36 billion for the quarter ending March 31, 2025 [2]. The revenue figure surpassed market expectations, driven by robust demand for semiconductor manufacturing equipment, particularly from the artificial intelligence sector. However, ASML has issued a cautionary note about its outlook for 2026, citing geopolitical and economic uncertainties [2].

The downgrade by DZ BANK AG follows a period of positive investor sentiment, with analysts highlighting ASML's competitive edge in advanced lithography machines and strong demand from major clients such as TSMC and Intel [1]. Despite the downgrade, the company's financial metrics, such as a price-to-earnings ratio of 31.92 and a debt-to-equity ratio of 0.21, indicate a strong financial position [2].

Looking ahead, ASML anticipates third-quarter sales to be between €7.4 billion and €7.9 billion, with a gross margin between 50% and 52% [2]. The company also expects total net sales growth of approximately 15% compared to 2024, maintaining a gross margin around 52% [2].

Investors should closely monitor ASML's earnings releases and guidance updates to gauge the impact of geopolitical and economic uncertainties on the company's growth prospects.

References:
[1] https://stockanalysis.com/stocks/asml/revenue/
[2] https://site.financialmodelingprep.com/market-news/asml-holding-nv-surpasses-earnings-revenue-estimates

ASML Holding Downgraded to Hold Rating by DZ BANK AG Analyst

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