Analysts at Bank of America raised their estimates and price target for ASML Holdings (ASML), citing growing confidence that the company will reach revenues of 40 billion euros by 2025.
The investment bank raised its revenue and earnings per share (EPS) forecast for 2025/26 by around 6-9% to reflect rising demand for its EUV instruments and rising gross margins.
BofA also confirmed that ASML is their top choice.
Moreover, the bank raised its share price target from €1,156/$1,213 to €1,302/$1,406, citing higher EBITDA compound annual growth rate (CAGR), multiple sector expansion “and AI deficit in Europe.”
“ASML remains indispensable in building AI infrastructure as all AI processor and DRAM companies use EUV technology to produce their chips,” analysts said.
“While some concerns remain about foundry orders through the end of this year, we believe the pace of investment by all leading hyperscalers and enterprise customers in AI infrastructure leaves significant doubt on the need to add significant capacity at the front end,” they added. .
ASML’s European-listed shares rose 2% on Thursday.