BOJ keeps interest rates flat, but flags rate hikes on rising inflation, GDP
Bernstein SocGen Group initiated coverage of BE Semiconductor (BESI:NA) (OTC:BESIY) with an outperform rating and a price target of EUR167.00, citing the company’s dominant position in hybrid bonding technology. According to InvestingPro data, the company maintains strong financial health with a current ratio of 6.34 and operates with moderate debt levels, though it currently trades at elevated valuation multiples.
The research firm highlighted that BE Semiconductor, commonly known as Besi, has secured its dominance in hybrid bonding through both its leadership in bonding technology and its partnership with Applied Materials (NASDAQ:AMAT). Hybrid bonding is described as "the ultimate choice of advanced packaging for the highest-performance logic and memory applications." The company’s strong market position is reflected in its impressive gross profit margin of 64.3% and return on equity of 36%.
Bernstein expects hybrid bonding to see increasing adoption over the next decade with major logic customers including TSMC, AMD (NASDAQ:AMD), Apple (NASDAQ:AAPL), and Intel (NASDAQ:INTC). The firm also projects that high bandwidth memory (HBM) will begin migrating to hybrid bonding technology starting in 2027.
Thermal Compression Bonding is expected to become a new growth driver for Besi, with the company leading in fluxless technology and entering Micron (NASDAQ:MU)’s supply chain, according to the research note.
Bernstein forecasts Besi’s earnings per share to grow at a compound annual growth rate of 41% from 2024 to 2027, with the EUR167.00 price target representing a 33% upside potential based on a price-to-earnings multiple of 40x, or a price/earnings-to-growth ratio of 1x. For deeper insights into BESI’s valuation and growth prospects, InvestingPro subscribers can access 15+ additional key metrics and expert analysis in the comprehensive Pro Research Report.
In other recent news, Deutsche Bank (ETR:DBKGn) has upgraded BE Semiconductor’s stock rating from Hold to Buy. This change comes despite the company missing booking expectations in the first quarter and issuing a less optimistic outlook for the second quarter. Analyst Robert Sanders from Deutsche Bank increased the price target for BE Semiconductor to €125.00, up from €95.00. The upgrade is based on the company’s ability to offer short lead times on its equipment, which could be advantageous in the current market. Sanders noted that while the semiconductor markets are experiencing softness, the focus should shift to the future potential of hybrid bonding technology. Conversations within the industry, along with BE Semiconductor’s own confidence, indicate a significant increase in hybrid bonding bookings by the second half of 2025. Key industry players like TSMC, Micron, and Intel are expected to drive this growth. Deutsche Bank’s updated price target reflects a positive outlook on BE Semiconductor’s medium to long-term prospects, particularly in hybrid bonding technology.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.