ASML Stock Upgraded: Morgan Stanley Sees Big Upside Ahead

Group 1 - ASML Holding N.V. has been upgraded by Morgan Stanley to "Overweight" from "Equal Weight" with a price target of €950, indicating early signs of improvement for the company [1][2] - Earnings forecasts for ASML have been significantly revised downwards since peaking in July 2024, with a notable impact on the share price, which has decreased by 45% from peak to trough [1] - The upgrade reflects expectations of positive earnings revisions and a cyclical recovery, with FY27 estimated EPS potentially reaching €33, which is 8% above consensus [2] Group 2 - Order momentum for ASML is expected to build before the end of 2025, with deliveries anticipated in late 2026 and 2027 [2] - Despite a recent rally in share price, it is believed that the current valuation still reflects challenges such as flat layer count, weak performance in China, and minimal sales from major clients like Intel and Samsung [2]