ASML Holding NV: Strong Backlog, Robust Financial Performance Justify Buy Rating

ASML Holding NV's strong market position and growth potential justify a Buy rating. Analyst Krish Sankar from TD Cowen maintains a €750.00 price target, citing a robust backlog of approximately €33 billion and better-than-expected financial performance in the June '25 quarter. The growth in EUV revenue and significant contribution from Foundry/Logic sales further reinforce ASML's potential for continued success. Bank of America Securities also reiterated a Buy rating with a €797.00 price target.

ASML Holding NV, a leading supplier of semiconductor manufacturing equipment, has received a strong endorsement from Wall Street analysts. Analyst Krish Sankar from TD Cowen maintained a Buy rating on the stock with a price target of €750.00, highlighting the company's robust market position and growth potential [1]. The analyst cited a combination of factors, including a strong backlog of approximately €33 billion and better-than-expected financial performance in the June '25 quarter. ASML's recent financial results, which exceeded analyst expectations, further reinforce the positive outlook for the stock.

ASML reported earnings per share of $6.85, beating the estimated $5.94, and revenue reaching $8.94 billion, surpassing forecasts [2]. The company's net profit increased to €2.3 billion, with a gross margin of 53.7% and a healthy price-to-earnings ratio of 31.92. The strong demand for semiconductor manufacturing equipment, driven by the artificial intelligence boom, is a key factor contributing to ASML's success. Despite the positive results, ASML has issued a warning about its outlook for 2026, citing geopolitical and economic uncertainties. However, the demand from artificial intelligence customers remains strong, providing some optimism for the future.

The growth in EUV (extreme ultraviolet) revenue, primarily due to productivity improvements, and the significant contribution from Foundry/Logic sales, further underscore ASML's potential for continued success. Bank of America Securities also reiterated a Buy rating on the stock with a price target of €797.00, reflecting the consensus among analysts about ASML's strong market position and growth potential [1].

In summary, ASML Holding NV's robust backlog, better-than-expected financial performance, and strong demand for semiconductor manufacturing equipment justify a Buy rating. The company's potential for continued success is evident in the growth in EUV revenue and the significant contribution from Foundry/Logic sales. Despite the uncertainties in the outlook for 2026, ASML's strong financial position and market leadership position make it an attractive investment for investors and financial professionals.

References:
[1] https://www.tipranks.com/news/ratings/asml-holding-nv-strong-market-position-and-growth-potential-justify-buy-rating-ratings
[2] https://site.financialmodelingprep.com/market-news/asml-holding-nv-surpasses-earnings-revenue-estimates