ASML stock price target lowered to €700 by Deutsche Bank on EUV shipment concerns

Investing.com - Deutsche Bank (ETR:DBKGn) has lowered its price target on ASML Holding NV (AS:ASML) (NASDAQ:ASML) to €700 from €750 while maintaining a Buy rating on the semiconductor equipment maker’s stock. The stock, currently trading at $754.45, has declined nearly 6% over the past week, though InvestingPro data shows ASML maintains a GREAT financial health score with strong profitability metrics.

The price target reduction follows ASML’s narrowing of its fiscal year 2025 sales range to the mid-point of €30-35 billion, despite reporting strong Q2 bookings of €5.5 billion. This guidance builds on ASML’s impressive 17.7% revenue growth over the last twelve months, with the company generating over $33 billion in revenue. For deeper insights into ASML’s valuation and growth prospects, including 11 additional key ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

Deutsche Bank analyst concerns stem from ASML’s lowered extreme ultraviolet (EUV) unit shipment forecast for 2025, which was reduced from "below 50" low NA shipments to just 42 units, suggesting execution issues at key customers Intel (NASDAQ:INTC) and Samsung (KS:005930).

The bank noted that Intel had built a substantial EUV equipment fleet for its 18A process technology ramp, which appears to be experiencing difficulties, particularly for external customers.

Samsung’s continued investment through the previous DRAM market downturn has likely resulted in excess high-bandwidth memory (HBM) capacity, which now awaits qualification from Nvidia (NASDAQ:NVDA), according to Deutsche Bank’s analysis.

In other recent news, ASML Holding NV has been in the spotlight with several significant developments. The company recently retracted its growth forecast for 2026, citing concerns over tariffs and global trade tensions, which could affect its sales. This cautious outlook led JPMorgan to lower its price target for ASML to EUR822.00, although the firm maintained an Overweight rating. Jefferies also downgraded ASML from buy to hold due to anticipated revenue declines in 2026, projecting a 2% year-over-year drop in revenue to EUR32.1 billion and a 6% decrease in earnings per share. Meanwhile, Bernstein initiated coverage of ASML with a Market Perform rating, expressing concerns about the company’s extreme ultraviolet lithography business and projecting EUV revenue growth below ASML’s guidance. Despite these challenges, ASML could benefit from the U.S. easing chip export restrictions to China, as noted by the company’s CFO, potentially boosting chip demand. However, ASML faces a weaker outlook for 2025 due to Samsung’s delay in completing its Texas semiconductor facility, which impacts potential equipment sales. These developments highlight a complex landscape for ASML as it navigates both opportunities and challenges in the semiconductor industry.

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