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On Tuesday, Kepler Cheuvreux analyst Ruben Devos upgraded BE Semiconductor Industries (AS:BESI:NA) (OTC:BESIY) stock rating from Hold to Buy and increased the price target significantly from EUR 104.00 to EUR 135.00. Devos cited a positive outlook for the company’s transition into a more decisive phase of growth, particularly with its hybrid bonding technology.
BE Semiconductor, known for its semiconductor assembly equipment, is experiencing a strategic pivot that has caught the attention of Kepler Cheuvreux. The analyst believes that the company is moving from early traction to broader, scaled adoption. This transition is supported by a growing base of anchor customers and better visibility on capacity additions.
The improved forecast also comes with expectations of expanding margins as hybrid bonding scales. According to Devos, the risk-reward balance for BE Semiconductor has now shifted favorably. Additionally, there are early signs of recovery in its legacy assembly business, which has been in a slump for the past four years.
Kepler Cheuvreux has adjusted its 2025-27E EPS estimates for BE Semiconductor by 2-7%, driven by stronger visibility on the demand for hybrid bonders. The new price target of EUR 135.00 reflects a change in the company’s business mix and valuation approach. Devos outlines a Sum of the Parts (SOP) valuation, attributing a 35x EV/EBIT multiple for the hybrid bonding segment, which aligns with semiconductor capital equipment peers that have EBIT margins over 50% and exhibit strong growth. The legacy business is valued at 15x.
The upgrade and new price target from Kepler Cheuvreux suggest confidence in BE Semiconductor’s growth trajectory and market position, especially as it capitalizes on the burgeoning demand for hybrid bonding technology in the semiconductor industry.
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