RBC Capital Initiates Coverage on ASML at Outperform

RBC Capital analyst Srini Pajjuri initiates coverage on ASML (NASDAQ: ASML) with an Outperform rating and a price target of $1,550.00.

“ASML outperformed the SOX index in 2025 on improving wafer fab equipment (WFE) spending and secular EUV growth. We expect these trends to continue into 2026/27 driven by strong GenAI demand.

DRAM supply is extremely tight, EUV intensity is increasing, and Samsung’s potential rebound in HBM4 is a meaningful catalyst, in our view.

In Logic, GenAI accelerators are adopting more advanced nodes and foundry competition is re-emerging. We believe China is largely de-risked and expect Services to sustain double-digit growth.

Valuation premium over US peers has compressed, which we think makes risk/reward attractive. Initiate at Outperform.”

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