Investing.com -- BofA Securities analysts said ASML (AS: ASML ) is in a position to pass tariff-related costs directly to customers, citing the company’s strong market position and pricing power.

In a series of investor meetings held in London with ASML’s CEO, CFO, and Investor Relations team, management indicated that tariffs would likely apply to certain parts imported into the U.S. for the company’s existing manufacturing operations.

These parts make up a low-single-digit percentage of ASML’s average cost of goods sold.

ASML also noted that if these components are then shipped back to U.S. customers after final assembly in the Netherlands, they could be “double-tariffed.”

Metrology and inspection systems are not included in the current tariff exemptions.

The brokerage maintains a Buy rating on ASML shares, with a price objective of €759. The stock is valued at 15.5 times projected EV/EBITDA for calendar year 2026, compared to a historical median multiple of 22 times, which BofA views as attractive.

ASML reported that it is fully booked for the midpoint of its 2025 EUV (extreme ultraviolet) guidance and 90% booked for DUV (deep ultraviolet) systems.

This level of visibility supports confidence in achieving 2025 revenue targets, with customer deferrals seen as limited and largely de-risked after mid-year.

For 2026, management described a “healthy start” in order volume, though noted that full-year visibility remains limited.

On the technology front, ASML reiterated that lithography intensity is expected to rise as chipmakers transition to the A16 process node and future generations.

The shift in DRAM architecture from 6F2 to 4F2 is expected to increase EUV layer demand.

BofA also estimates that low-NA EUV system ASPs could reach €300 million by 2030 and €500 million by 2035, consistent with the company’s roadmap and historical productivity-linked pricing trends.

Regarding China, ASML’s exposure is limited, with CXMT estimated to represent a low-single-digit percentage of total sales.

Management considers a full DUV export ban to China unlikely due to the country’s role in global mature-node capacity. Analysts added that upside potential to ASML’s 2025 earnings outlook appears broad-based.