Bank of America just raised its EUR/USD forecast
On Friday, Citi analyst Andrew Gardiner increased the price target on BE Semiconductor Industries (AS:BESI:NA) (OTC: BESIY) to €120.00, up from the previous target of €115.00. The semiconductor company’s stock rating remains at Neutral despite the adjustment in price target. According to InvestingPro data, BE Semiconductor maintains strong financial health with a "GOOD" overall score, though current analysis suggests the stock is trading above its Fair Value.
Gardiner’s assessment acknowledges the contrasting forces at play for BE Semiconductor’s shares. On one hand, there is optimism for long-term growth prospects, while on the other, there is a current lack of clarity regarding the timing of cyclical improvements or a structural rise in the adoption of hybrid bonding technology. The analyst pointed out that the semiconductor cycle is currently sluggish, and while there is an expectation for demand to pick up by later in 2025, the trajectory of this improvement is not clear. The company’s fundamentals show resilience, with a healthy gross profit margin of 65.2% and a 15-year track record of consistent dividend payments.
BE Semiconductor’s leading customers, such as TSMC, already have a sufficient number of hybrid bonders installed, and Intel (NASDAQ:INTC) is set to receive a new batch of tools soon. Other major players in the logic and memory chip manufacturing sector are still in the process of evaluating their need for hybrid bonding equipment. Gardiner noted that BE Semiconductor is justifiably hopeful about future adoption rates of its technology, yet he also highlighted that the exact timing of this adoption is highly uncertain, especially in the critical area of high bandwidth memory (HBM). The industry continues to debate the merits of thermo compression versus hybrid bonding techniques. For deeper insights into BE Semiconductor’s market position and growth potential, InvestingPro subscribers can access comprehensive analysis including 13 additional ProTips and detailed financial metrics.
In terms of valuation, BE Semiconductor’s shares are trading at a significant premium, with price-to-earnings (P/E) ratios of 47x for 2025 and 28x for 2026. Current InvestingPro data shows an even higher trailing P/E ratio of 52.2x and an EV/EBITDA multiple of 41.8x. These figures are considerably higher than those of its European peers, ASML (AS:ASML) and ASM International (AS:ASMI), which Gardiner suggests offer better visibility and less volatility. Taking all of these factors into account, Citi’s analyst concludes that BE Semiconductor’s shares are currently fairly valued at their market price.
In other recent news, BE Semiconductor Industries has experienced significant analyst activity. Stifel analysts downgraded the company’s stock from Buy to Hold, despite raising the price target from €120 to €140. This decision was influenced by industry developments and the potential use of BE Semiconductor’s equipment by major semiconductor players, though Stifel noted that some key end-markets remain weak. Meanwhile, UBS analysts upgraded BE Semiconductor’s stock from Neutral to Buy, increasing the price target from EUR 111.70 to EUR 159.00. UBS cited a projected recovery in demand and new applications for the company’s technology as reasons for the upgrade, alongside an optimistic view of revenue growth. UBS also revised their earnings per share forecasts upwards for the fiscal years 2025 through 2027, anticipating increased adoption of hybrid bonding technology. Both firms have adjusted their outlooks based on recent industry trends and BE Semiconductor’s potential to capitalize on emerging opportunities. These developments reflect a complex landscape for BE Semiconductor, with varying analyst perspectives on its future prospects.
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