UPDATE: Bank of America Upgrades ASML Holding N.V. to Buy on 20mm Company Note

Bank of America upgraded ASML Holding N.V. (NASDAQ: ASML) from Neutral to Buy and raisesdthe price objective from $53.00 to $60.00.Bank of America commented, "We upgrade ASML from Neutral to Buy with a new PO of €60 ($78), which values the stock on 4.0x FY14e P/B. We downgraded ASML for three reasons: 1) peak multiples, 2) rising 28nm yields, 3) poor DRAM/NAND memory outlook and 4) our view that 20nm logic would be a minor node at foundries. ASML's FY13 revenue guidance effectively validates point 2) and 3) and, combined with higher opex assumptions, we have revised our FY13e EPS by c. 26%. However TSMC comments this morning that 20nm logic will be a major node lead to increase our FY14e EPS by 9%, leaving the stock on a just 11.5x P/E 2014e."ASML Holding N.V. closed at $63.82 on Wednesday.