Tariff cost transfer without worry - Bank of America Merrill Lynch gives ASML Holding NV ADR (ASML.US) a "buy" rating.

Bank of America released a research report, giving ASML Holding NV ADR (ASML.US) a "buy" rating with a target price of $835. The bank pointed out that, based on its market-leading position, ASML Holding NV ADR has the pricing power to pass on tariff-related costs to customers. Management stated that imported parts used for ASML Holding NV ADR's existing US-manufactured components (which represent a low single-digit percentage of each machine's selling cost on average) may be subject to tariff impacts. If these components are assembled in the Netherlands and then sold back to US customers, they may face "double taxation." Additionally, measuring and inspection systems are not currently included in the tariff exemption list. ASML Holding NV ADR confirmed that its 2025 Extreme Ultraviolet (EUV) lithography equipment orders have covered the full capacity indicated in the mid-term guidance, and the Deep Ultraviolet (DUV) lithography equipment orders have completed 90% of the bookings, strengthening Bank of America's confidence in achieving the revenue target for 2025. Management is more cautious about the revenue contribution from non-Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR storage customers in 2025/26, mainly based on the progress of customer technology roadmaps and the time required for product certification. Although the order volume for 2026 shows a "robust start," the full year performance is currently difficult to quantify.