Raymond James analyst Srini Pajjuri has maintained their bullish stance on ASML stock, giving a Buy rating on July 8.
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Srini Pajjuri has given his Buy rating due to a combination of factors that highlight both the near-term stability and long-term growth potential of ASML Holding. The company’s revenue projections for 2025 and 2026 suggest a stable outlook, with management expected to maintain its previous guidance. Despite a lack of high expectations for bookings this quarter, the wafer fab equipment (WFE) market is projected to grow at a mid-single-digit rate, driven by robust demand in areas such as GenAI and increasing logic die sizes.
Additionally, ASML’s valuation is currently at a significant discount compared to its three-year average, making the risk/reward profile particularly appealing. The potential for upside in WFE demand, supported by industry commentary and top-down wafer demand analysis, further strengthens the case for a Buy rating. While there are concerns regarding lower litho intensity due to the transition to gate-all-around (GAA) nodes, the impact has been modest, and ASML’s systems revenue is expected to outperform WFE in the coming years.
In another report released on July 8, Wells Fargo also maintained a Buy rating on the stock with a $890.00 price target.