Royal Bank Of Canada Upgrades ASML (NASDAQ:ASML) to Moderate Buy

ASML (NASDAQ:ASML) was upgraded by equities researchers at Royal Bank Of Canada to a “moderate buy” rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

A number of other brokerages have also recently issued reports on ASML. Bank Degroof cut shares of ASML to a “hold” rating in a research note on Friday, October 10th. The Goldman Sachs Group reaffirmed a “buy” rating on shares of ASML in a research note on Friday, October 10th. New Street Research restated a “neutral” rating on shares of ASML in a report on Monday, October 6th. Evercore ISI reaffirmed an “outperform” rating on shares of ASML in a research note on Thursday, October 16th. Finally, Morningstar lowered shares of ASML to a “hold” rating in a report on Thursday, September 18th. Three investment analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $1,392.75.

ASML Price Performance

Shares of ASML traded up $25.04 during midday trading on Wednesday, reaching $1,356.64. The stock had a trading volume of 400,994 shares, compared to its average volume of 1,880,851. The company has a current ratio of 1.31, a quick ratio of 0.70 and a debt-to-equity ratio of 0.14. The company has a market capitalization of $533.54 billion, a price-to-earnings ratio of 55.16, a price-to-earnings-growth ratio of 1.87 and a beta of 1.86. The company’s 50-day moving average is $1,094.62 and its 200 day moving average is $937.89. ASML has a 12-month low of $578.51 and a 12-month high of $1,375.37.

ASML (NASDAQ:ASML) last released its earnings results on Wednesday, October 15th. The semiconductor company reported $6.41 earnings per share for the quarter, topping analysts’ consensus estimates of $6.27 by $0.14. ASML had a return on equity of 47.74% and a net margin of 27.08%.The company had revenue of $8.80 billion during the quarter, compared to the consensus estimate of $8.99 billion. During the same quarter in the previous year, the company posted $5.28 EPS. ASML’s quarterly revenue was up .7% compared to the same quarter last year. On average, equities analysts predict that ASML will post 25.17 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ASML. Manning & Napier Advisors LLC purchased a new position in shares of ASML during the third quarter valued at approximately $25,000. Princeton Global Asset Management LLC raised its position in shares of ASML by 153.8% in the 2nd quarter. Princeton Global Asset Management LLC now owns 33 shares of the semiconductor company’s stock worth $26,000 after purchasing an additional 20 shares during the last quarter. City Holding Co. bought a new position in ASML in the 3rd quarter worth about $26,000. Binnacle Investments Inc increased its stake in ASML by 78.9% during the 2nd quarter. Binnacle Investments Inc now owns 34 shares of the semiconductor company’s stock valued at $27,000 after purchasing an additional 15 shares in the last quarter. Finally, Pin Oak Investment Advisors Inc. purchased a new position in ASML in the second quarter worth about $30,000. 26.07% of the stock is currently owned by institutional investors.

ASML News Roundup

Here are the key news stories impacting ASML this week:

• Positive Sentiment: TSMC’s upgraded capex outlook is being viewed as a direct demand catalyst for ASML’s EUV and immersion systems — investors expect stronger tool orders and services revenue as fabs ramp spending. Why TSMC’s capex upgrade is a bigger win for ASML than peers?
• Positive Sentiment: JPMorgan raised ASML’s price target (to $1,518) and keeps an overweight/optimistic stance, signaling more upside from current levels and supporting the rally. Benzinga: JPMorgan price target
• Positive Sentiment: Royal Bank of Canada upgraded ASML to a “moderate buy,” adding more analyst buying interest into the move. Zacks: RBC upgrade
• Positive Sentiment: ASML cleared a $500 billion+ market-cap milestone on the back of TSMC’s upbeat outlook — a market-cap landmark that attracts attention from momentum and institutional flows. Reuters: ASML tops $500B
• Positive Sentiment: UBS reaffirmed its buy rating, reinforcing sell-side conviction among major brokerages. MarketScreener: UBS keeps buy
• Neutral Sentiment: Jefferies and Barclays both reiterated neutral ratings — a reminder that some firms see upside as capped or want more confirmation from order flow/earnings. MarketScreener: Jefferies neutral MarketScreener: Barclays neutral
• Neutral Sentiment: ASML’s installed-base management (service and upgrades) is gaining momentum — a steady revenue source that supports margins but is less volatile than new-system orders. Zacks: IBM/installed base
• Neutral Sentiment: ASML is highlighted in thematic pieces on dominant tech monopolies — supportive for long-term investor interest but not an immediate earnings driver. 247WallSt: monopolies piece
• Negative Sentiment: Valuation and positioning risk: ASML now trades at a high P/E (mid-50s) after the run-up; stretched multiples mean disappointing order/earnings news or any cooling in TSMC/industry capex could trigger a pullback.

About ASML

ASML Holding N.V. (NASDAQ: ASML) is a Dutch company that develops, manufactures and services advanced photolithography systems used to produce semiconductor chips. Headquartered in Veldhoven, Netherlands, ASML supplies capital equipment and associated software and services that enable semiconductor manufacturers to pattern the intricate circuits on silicon wafers. The company is widely recognized for its leadership in extreme ultraviolet (EUV) lithography as well as its deep ultraviolet (DUV) platforms used across multiple process nodes.

ASML’s product portfolio includes EUV and DUV lithography machines, light sources, imaging optics and control software, together with spare parts, upgrades and field services.