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Investing.com - Jefferies reiterated a Hold rating on ASML Holding NV (NASDAQ:ASML) (ASML:NA) shares with a price target of EUR1,260.00.
ASML reported first-quarter 2026 sales in line with expectations, with gross margin of 53% ahead of Jefferies’ estimate of 52%. The company guided second-quarter sales to a mid-point of EUR8.7 billion with gross margin at 51.5%, both below Jefferies’ forecast and consensus. The stock trades at $1,518, near its 52-week high of $1,547, reflecting a remarkable 124% gain over the past year.
ASML raised its full-year revenue guidance range to EUR36-40 billion from EUR34-39 billion, increasing the mid-point by 4%. The upside appears to come mainly from immersion lithography, where ASML now expects an almost flat trend instead of a decline due to falling China sales.
Demand from DRAM and advanced logic remains strong, with low-NA EUV capacity rising to 80 systems in 2027 from around 60 this year. The improvement in immersion lithography could partially reflect MATCH Act related accelerated buying.
Jefferies expects the valuation multiple to gradually de-rate, limiting share price upside, even as estimates are likely to rise modestly toward the high end of the new guidance range. The concern appears warranted as ASML currently trades at a P/E ratio of 51.7. According to InvestingPro analysis, the stock appears overvalued relative to its Fair Value. For deeper insights, investors can access ASML’s comprehensive Pro Research Report, one of 1,400+ available reports transforming complex data into actionable intelligence.
In other recent news, ASML Holding NV reported strong financial results for the first quarter of 2026, with net sales reaching EUR 8.8 billion and a gross margin of 53%. These figures either met or exceeded the company’s guidance expectations, demonstrating robust operational momentum. In light of these results, ASML has raised its full-year revenue guidance to a range of EUR 36-40 billion, up from the previous EUR 34-39 billion. This adjustment reflects the company’s confidence in continued strong demand as customers expand their capacity.
Barclays has reiterated its Overweight rating on ASML, maintaining a price target of EUR 1,500. The firm highlighted the strength of ASML’s order book, attributing it to increasing demand in the market. These developments underscore ASML’s optimistic outlook and the positive reception from analysts. Investors are closely watching these updates as they assess the company’s future growth potential.
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