RBC Expects Sustained Growth Momentum for ASML Through FY28; Price Target, Estimates Up

01:33 AM EDT, 07/16/2026 (MT Newswires) -- RBC Capital Markets forecasts sustained revenue and margin momentum for ASML (ASML.AS) through full-year 2028, after the Dutch semiconductor equipment maker's second-quarter 2026 beat and raised 2026 outlook. "Management now sees ~65/85 [low-numerical-aperture] units for 2026/27 vs at least 60/80 previously, and is investigating another 30% capacity expansion for 2028. While the 2027 number may have fallen short of more bullish investor [expectations] for 90 units, we believe there is still room for upside. In addition, mix is set to improve next year and management also sees "more flexibility" in (like-for-like) pricing. Services continues to fare well and Immersion demand is tracking ahead, both tailwinds to gross margins," the research firm said Wednesday, noting scope for earnings upside from potential pricing adjustments. ASML reported second-quarter revenue of 9.33 billion euros and an EPS of 7.58 euros, which surpassed RBC estimates of 8.7 billion euros and 6.78 euros, respectively, as well as the market expectations of 9 billion euros and 6.89 euros. Management also raised its 2026 revenue outlook to between 43 billion euros and 45 billion euros from the previous range of 36 billion euros to 40 billion euros. Against this backdrop, RBC increased its price target to $2,100 from $2,000 and maintained its outperform rating. The research firm also boosted its 2026 and 2027 EPS forecasts to 39.50 euros and 57.82 euros, respectively, from 31.78 euros and 40.24 euros.