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Investing.com -- New Street Research upgraded ASML (AS:ASML) to Buy with a €790 price target in a note to clients on Thursday.
The firm cited the company’s strong positioning for 2026 and potential to outperform peers in the semiconductor capital equipment space.
While consensus expects just 2% revenue growth for ASML next year, versus 6% to 12% for peers, New Street Research sees that as “conservative.”
Analysts at the firm argue there is “room for ASML to outperform, driven by high leading-edge exposure.”
The firm notes that ASML is set to benefit from “higher growth in leading-edge WFE spending and limited risk of share loss in China,” which should allow it to grow “in the upper end of its peer group.”
New Street Research added that “normal order intake in 3Q would allow management to ease concerns around 2026 growth.”
With the stock currently trading at 25 times forward earnings, below both historical averages and peers like KLA, the firm sees “limited risk of further de-rating.”
The analysts acknowledged that visibility on overall wafer fab equipment (WFE) spending remains low and a broader pullback next year is possible. However, “within the group we expect ASML to outperform,” they said.
The €790 target price is based on a multiple of 25 times 2027 earnings of €31.9 per share.
In contrast, New Street Research maintained a Neutral rating on other names in the sector, including TEL (¥29,750), KLA ($935), AMAT ($215), and LAM ($100).