Berenberg Lifts Price Target, Estimates for ASML on 'Strong' Demand, Margin Outlook Upgrade

01:18 AM EDT, 07/17/2026 (MT Newswires) -- Berenberg raised its price target and earnings forecasts for ASML (ASML.AS), citing "strong" end-market demand and better-than-anticipated margin guidance upgrade. "ASML raised its FY 2026 guidance again during its Q2 2026 earnings of 15 July. The company now expects FY 2026 revenue to be EUR43bn-45bn, higher than the EUR40bn expected by consensus. At the same time, the company upgraded its gross margin guidance to 54-56%, compared to the consensus expectation of 52.5%. Based on our investor feedback, the gross margin guidance was a positive surprise, supported by strong equipment volumes, a positive product mix and a robust Installed Base Management business, driven by equipment upgrades. In addition, during the conference call, we believe ASML's comments on price increases were more constructive than previously," analysts said Thursday. The research firm also highlighted management commentary that its current order intake growth remained "extremely strong" in the first half of 2026, prompting the Dutch semiconductor equipment maker to increase its manufacturing capacity for low-numerical-aperture extreme ultraviolet lithography systems and deep-ultraviolet lithography systems. "In our view, the street's low NA EUV expectation is already at 90-95 tools for 2027 and 110 tools for 2028; although the 2027 number was slightly lower than expected, ASML stated that it could further expand capacity if customers need more, and ASML's new 2028 target is in line with expectations. Despite the limited positive surprise relative to current investor expectations, we believe the continued capacity build-out plan confirms that customer engagement remains intensive and that underlying demand from end-markets like logic and memory continues to be solid," the note said. Against this backdrop, Berenberg raised the buy-rated stock's price target to 2,100 euros from 1,570 euros and boosted its earnings projections for full-year 2026 to 2028, including sales, EBIT, and EPS.