BofA Lifts ASML (ASML) PT to $1,331, Maintains Buy Rating Expecting Higher Re-Rating on FY27 Lithography Intensity, Margin Expansion

ASML Holding (NASDAQ:ASML) is one of the most profitable tech stocks to buy. On December 3, Bank of America raised the firm’s price target on ASML to $1,331 from $1,092 and kept a Buy rating on the shares. BofA views fiscal 2027 as a key inflection point for ASML, which the firm believes will trigger a higher re-rating for the stock. This expected acceleration in performance is driven by two main factors: increased lithography intensity and an expansion in the company’s gross margins due to a more favorable product mix.

Earlier in its Q3 2025 earnings report, ASML Holding disclosed that the company achieved total net sales of EUR7.5 billion ($8.75 billion), falling within its guidance range. This was a 7.60% year-over-year increase. The EPS for the quarter totaled $6.39, which beat Street estimates by $0.17. Net System Sales totaled EUR5.6 billion, with EUV system sales contributing EUR2.1 billion of that figure, and Installed Base Management Sales reaching EUR2 billion.

Additionally, ASML showed strong demand for its most advanced technology, reporting Net System Bookings of EUR5.4 billion, with EUV systems accounting for EUR3.6 billion of that total. Looking ahead, ASML projects total net sales between EUR9.2 and EUR9.8 billion for Q4. For the Full Year 2025, the company expects total sales to be around EUR32.5 billion. ASML also highlighted a partnership with Mistral AI to enhance AI capabilities across its portfolio.

ASML Holding (NASDAQ:ASML) provides lithography solutions for the development, production, marketing, sales, upgrading, and servicing of advanced semiconductor equipment systems. It offers lithography, metrology, and inspection systems.

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Disclosure: None. This article is originally published at Insider Monkey.