Investing.com -- BofA Securities said it remained bullish on semiconductor capital equipment stocks, reiterating “buy” ratings on ASML, ASM and VAT, which it prefers within the group.

The brokerage cited five reasons for its positive stance: likely upside to revenues and gross margins in the second half of the year driven by mix, potential like-for-like price hikes into CY27/28E that could lift gross margins above consensus expectations for those years, the opening of new NAND greenfield fabs in 2028E, and upside from China wafer fab equipment spending in 2H26E.

It also pointed to bearish positioning and complacency in the market over a perceived lack of upside to consensus expectations.

On valuation, BofA noted that ASML, ASM and VAT are trading 2.9x to 5.8x below the median CY27E EV/EBIT multiples for the group, which reinforced its bullish view.

The brokerage kept its “neutral” rating on BESI, citing ASML’s entry into the hybrid bonding market, the potential for flipchip orders to peak in 3Q26E, and delays in the adoption of hybrid bonding in high-bandwidth memory, which it admitted was well understood by the market.

Original Article