Investing.com — Wall Street analysts have raised their price targets on following the Dutch chipmaker’s stronger-than-expected first-quarter results and upgraded full-year guidance.
Analysts at both UBS and Deutsche Bank raised their price objectives to €1,600 from €1,500, and reiterated Buy recommendations.
The moves came after ASML lifted its fiscal 2026 revenue growth guidance to 10-22% year-on-year, up from a prior range of 4-19%, driven by stronger-than-expected demand for immersion lithography tools from advanced logic and memory chipmakers.
In turn, UBS hiked its 2026-2028 EPS estimates by 3-5%, putting its 2027 EPS forecast 10-15% above consensus.
A key focus for investors has been ASML’s manufacturing capacity for its low numerical aperture extreme ultraviolet (EUV) machines. The maker of chipmaking equipment guided to shipments of at least 60 low-NA EUV tools in 2026 and at least 80 in 2027.
Deutsche analyst Robert Sanders highlighted the importance of the 2027 guidance in particular, saying it gave investors “confidence in the strong growth story.”
“The key question from here is whether a further wave of orders could lead to ASML raising this view on 2027 to 90 units at the Q2 results, or whether a number higher than 80 units could be capped by clean room constraints and a lack of pedestals,” he added.
UBS forecast 75 low-NA EUV shipments in 2027, slightly below the level many investors assume, citing higher throughput from the next-generation EUV F platform launching that year. The new model is expected to deliver roughly 13-18% higher throughput than the current E model and over 50% more than the D model, reaching above 260 wafers per hour.
On China, UBS analysts now expect ASML’s revenues from the country to fall 10% year-on-year in 2026, a steeper decline than its previous estimate of -1%, as the company is expected to prioritize advanced logic and memory customers amid constrained immersion capacity.
Looking further ahead, the analysts identified High NA EUV tools as another potential catalyst. They said orders for High NA machines would need to be placed in the second half of 2026 to enable installation by 2028 for high-volume manufacturing.
“Looking forward, we identify several drivers supporting multi-year growth in low NA EUV/DUV, stemming from capacity expansions in advanced logic and HBM, as well as initial high NA orders anticipated in 2H26, with potential updates as early as next week at TSMC’s symposium,” analysts including Francois-Xavier Bouvignies wrote.