RBC: ASML Poised for Price Hikes Amid Multiyear EUV Supply Squeeze; Price Target Up

02:33 AM EDT, 07/14/2026 (MT Newswires) -- RBC Capital Markets increased its price target for ASML (ASML.AS), noting that a multiyear supply bottleneck for extreme ultraviolet lithography machines leaves the company well-placed to execute pricing actions. "EUV mix should improve in 2027 as the company ships fewer 3600D units and more E and F variants. ASML is driving meaningful productivity improvements (3800F offers ~13% higher wafers/hr than 3800E tool), which should support higher [average selling prices] and margins. We believe the time is also ripe for management to consider like-for like price increases given strong demand, tight supply, component cost inflation, and record profitability among its Foundry (TSM's GMs up >10pts since 2021) and Memory customers (GMs of ~80% at record highs)," analysts said Monday. On the earnings side, the research firm expects ASML to beat RBC's second-quarter revenue forecast of 8.7 billion euros and its EPS estimate of 6.78 euros and slightly surpass respective consensus expectations of 9 billion euros and 6.89 euros. The semiconductor equipment manufacturer is scheduled to release its second-quarter financial results on Wednesday. "We expect Q3 outlook to be largely in line with consensus of EUR10.4B/EUR8.55, and management to raise 2026 revenue outlook to the upper end of prior range for EUR36-40B. We are raising our PT from $1,700 to $2,000 due to recent peer multiple expansion and our view regarding upside potential to 2027 EPS," the note said. RBC still rates the stock at outperform.