02:11 AM EDT, 10/16/2026 (MT Newswires) -- HSBC Global Investment Research believes ASML's (ASML.AS) improving visibility on its growth post-2028 and its "strong" backlog may serve as valuation rerating drivers. "While clarity remains low on the extent to which ASML can raise its 2027/28 tool shipment capacities, we expect further details at Dec-Q results in January along with disclosures on tool backlog. The fact that ASML is already taking tool orders for 2028 and beyond suggests that it may have already sold out its capacity for 2027 and that FY26 backlog may exceed our 2027 tool revenue forecast of EUR44.4bn. This could force the market to move its valuation basis to 2028. ASML currently trades at 2028e PE of 18.4x on our estimates, at a significant discount to the last five-year average forward 12-month PE multiple of 33.2x (22-50x range). Valuation may turn out to be even cheaper if ASML manages to raise its 2028 low NA EUV shipment capacity materially beyond the 115 units we model currently, to meet increasing demand," analysts said Thursday. Reflecting "solid" third-quarter results and management comments on capacity expansion and value-based pricing, the research firm lifted its full-year 2026 through 2028 revenue and operating profit forecasts by 1% to 3% and 3% to 4%, respectively. HSBC said further estimate upgrades are contingent on better visibility regarding ASML's tool shipment capacity in 2027 and 2028 and potential new trade restrictions in China. Against this backdrop, analysts raised their price target to 2,261 euros from 2,177 euros and reiterated their buy rating on the stock.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.