Barclays downgrades BE Semiconductor stock to Equalweight on elevated expectations

Published 03/07/2025, 09:36
Barclays downgrades BE Semiconductor stock to Equalweight on elevated expectations

Investing.com - Barclays (LON:BARC) downgraded BE Semiconductor (AS:BESI) (OTC:BESIY) from Overweight to Equalweight on Thursday, maintaining a price target of EUR125.00.

The downgrade follows BE Semiconductor’s strong performance over the past month after a positive Capital Markets Day, with Barclays noting that market expectations have become "further elevated" for the semiconductor equipment manufacturer.

Barclays expressed caution regarding the adoption of hybrid bonding in High Bandwidth (NASDAQ:BAND) Memory, referencing its previous analysis from March 17, 2025, and indicated that the company will need to secure meaningful orders to provide visibility on growth for 2026.

The research firm’s analyst remains below Bloomberg consensus estimates for 2026, which currently project approximately 40% growth, creating what Barclays describes as "risk for disappointment" despite maintaining its price target with an unchanged target multiple of 35x 2026 estimated earnings per share.

While Barclays acknowledges the significant long-term opportunity in advanced packaging for BE Semiconductor, it "struggles to see why Besi can outperform over the next 12 months" given current market expectations for improving orders in the second half of 2025.

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