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Investing.com - Bernstein SocGen Group reiterated its Outperform rating and EUR167.00 price target on BE Semiconductor (AS:BESI) (OTC:BESIY) on Friday. The company, currently valued at $11.27 billion, has demonstrated strong financial health according to InvestingPro data, with a robust gross profit margin of 64.33%.
The research firm cited the upcoming shift in high-bandwidth memory (HBM) bonding technology from flux-based thermal compression bonding to fluxless TCB in 2026. This transition is expected to enable smaller bumps and reduced gaps between chips, supporting improvements in I/O pitch.
Bernstein noted the change is anticipated to occur with HBM 4 12-hi, where the number of input/output connections will increase from 1024 to 2048. Current major suppliers of HBM bonders include Hanmi, SEMES, Hanhwa, and Shinkawa.
The firm identified BE Semiconductor as a "major beneficiary" of HBM bonding developments, particularly with the industry migration to fluxless TCB technology. Only two companies were highlighted as standouts in this transition: BE Semiconductor and ASMPT.
According to Bernstein’s analysis, BE Semiconductor offers superior alignment accuracy and throughput compared to competitors in the fluxless TCB space, positioning the company favorably as the industry adopts this advanced bonding technology.
In other recent news, BE Semiconductor has been the focus of significant analyst attention. Bernstein initiated coverage of the company with an outperform rating and set a price target of EUR167.00, highlighting BE Semiconductor’s strong position in hybrid bonding technology. The firm anticipates substantial growth in hybrid bonding adoption over the next decade, projecting a 41% compound annual growth rate in earnings per share from 2024 to 2027. Meanwhile, Deutsche Bank (ETR:DBKGn) upgraded BE Semiconductor from Hold to Buy, raising the price target to €125.00. This upgrade comes despite the company missing booking expectations in the first quarter and offering a cautious outlook for the second quarter. Deutsche Bank’s analyst, Robert Sanders, noted the strategic advantage of BE Semiconductor’s short lead times and expressed optimism about future hybrid bonding volumes. Both Bernstein and Deutsche Bank foresee significant growth potential driven by partnerships with major industry players like TSMC, Micron (NASDAQ:MU), and Intel (NASDAQ:INTC). These developments suggest that BE Semiconductor could see increased bookings and momentum in hybrid bonding technology in the coming years.
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