ASML stock price target raised to $1,140 at Wells Fargo on clean Q3

Wells Fargo raised its price target on ASML to $1,140, maintaining an Overweight rating, following the semiconductor equipment manufacturer's strong Q3 2025 performance. ASML exceeded consensus bookings at EUR5.4 billion, driven by EUV technology for DRAM, and reported EBIT 2% above estimates. This positive outlook, fueled by improving demand visibility and AI-driven growth, led multiple other firms including Evercore ISI, Deutsche Bank, Goldman Sachs, and BofA Securities to also increase their price targets and maintain Buy ratings.

Analysis

ASML's Q3 2025 results showcased robust operational strength, with bookings significantly exceeding consensus at EUR5.4 billion against an anticipated EUR4.9 billion, primarily driven by strong demand for its Extreme Ultraviolet (EUV) technology in DRAM memory chips. The company's EBIT also surpassed estimates by approximately 2%, reaching EUR2.5 billion, despite revenue being slightly below expectations. This performance reinforces ASML's critical role in advanced semiconductor manufacturing.

Following these results and an optimistic outlook, Wells Fargo raised its price target on ASML to $1,140 from $1,105, maintaining an Overweight rating, alongside similar price target increases and reiterated Buy ratings from Evercore ISI, Deutsche Bank, Goldman Sachs, and BofA Securities. Analysts highlight improving demand visibility, particularly from AI-driven growth, and expectations for revenue growth exceeding low single digits as key drivers. Wells Fargo projects approximately 4% year-over-year revenue growth for 2026, with estimates extending to €41.4 billion in revenue and €35.91 EPS by 2028.

Despite a significant 59.8% return over the past six months, ASML's current valuation multiples, including a 36.55x P/E and 27.86x EV/EBITDA, align closely with Wells Fargo's unchanged 2026 estimates of 37x P/E and 29x EV/EBITDA. This suggests the stock, currently trading near its InvestingPro Fair Value, is largely priced for its projected growth. The company's upcoming 2026 guidance in January will be crucial for further market clarity.

Key Decisions for Investors

• Investors should closely monitor ASML's 2026 guidance in January for updated demand visibility and revenue growth expectations, which could serve as a significant catalyst.
• Given the stock's strong six-month performance and current valuation near fair value, investors should assess if the positive analyst sentiment and AI-driven demand provide sufficient justification for further upside.
• Evaluate the long-term sustainability of EUV technology demand, particularly in DRAM and advanced logic, as this remains fundamental to ASML's growth trajectory and future analyst revisions.