BofA Says ASML De-rating 'Unjustified' Amid Strong Revenue, EPS Growth Expectations; Buy Retained

06:56 AM EDT, 08/26/2026 (MT Newswires) -- BofA Global Research views ASML's (ASML.AS) de-rating as "unjustified," noting that the Dutch semiconductor equipment maker's rising lithography intensity supports "durable" growth. "ASML trades at a 7.7x turn discount to its historical EV/EBIT multiple (20.3x CY27E vs 28.0x median) and a 1.6x turn discount to global peers (21.9x EV/CY27EEBIT). By contrast, major US peers trade at a 6.1x-7.0x premium to their historical averages. The simultaneous de-rating of ASML and re-rating of peers largely explains the stock's significant underperformance over the past 12 months," analysts said Tuesday. "We view this valuation gap as difficult to justify: consensus expects ASML to deliver the second-highest revenue CAGR among large-cap semicap peers (27% vs 22% average) and the strongest EPS CAGR (39% vs 33% average). With our estimates above consensus, we continue to see compelling value." As such, the buy rating on the stock and price objective of 2,452 euros were both reaffirmed. The research firm also noted that ASML remains a top pick in the semiconductor manufacturing sector amid expectations that the company will deliver "the largest gross margin expansion," compared with peers, over the next three years.