ASML (ASML) is seeing strong demand for its units and is set for tailwinds from product mix and pricing, following solid Q2 results and Q3 outlook, RBC Capital Markets said in a Wednesday note.

The company stated it expects to ship around 65 low-numerical-aperture units in 2026 and 85 in 2027, while looking into increasing manufacturing capacity by 30% in 2028.

The 2027 figure falls short of bullish investor expectations of 90 units, but RBC analysts said they still anticipate room for upside.

Customers are moving from the older 3600D systems to the newer 3600E/F models, expected to improve average selling prices and profit margins in 2027, the analysts said. They added that the current demand environment also enables ASML to have more flexibility in offering "like-for-like pricing."

ASML's services business is performing strongly, while demand for Immersion lithography systems is stronger than expected, with both trends expected to help boost its gross margins, the note said.

RBC raised its 2026 EPS estimate to 39.50 euros ($45.20) from 31.78 euros and 2027 EPS to 57.82 euros from 40.24 euros.

RBC reiterated the company's stock rating at outperform and increased the price target to $2,100 from $2,000.

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