ASML best positioned for 2026 in the Semicap pack: New Street Research\n\nAuthor Sam Boughedda\n\nStock Markets\n\nPublished 24-07-2025, 05:50 pm ASML best positioned for 2026 in the Semicap pack: New Street Research\n\nInvesting.com -- New Street Research upgraded ASML (AS:ASML) to Buy with a €790 price target in a note to clients on Thursday. \n\nThe firm cited the company’s strong positioning for 2026 and potential to outperform peers in the semiconductor capital equipment space.\n\nWhile consensus expects just 2% revenue growth for ASML next year, versus 6% to 12% for peers, New Street Research sees that as “conservative.” \n\nAnalysts at the firm argue there is “room for ASML to outperform, driven by high leading-edge exposure.”\n\nThe 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.”\n\nNew Street Research added that “normal order intake in 3Q would allow management to ease concerns around 2026 growth.” \n\nWith 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.”\n\nThe 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.\n\nThe €790 target price is based on a multiple of 25 times 2027 earnings of €31.9 per share.\n\nIn 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).

ASML best positioned for 2026 in the Semicap pack: New Street Research

New Street Research upgraded ASML to Buy with a €790 price target, citing its strong positioning in 2026 and potential to outperform peers in the semiconductor capital equipment sector. The analysis highlights ASML's leading-edge exposure, China's WFE spending growth, and current stock valuation at 25x forward earnings, while maintaining Neutral ratings on other sector peers.