On Tuesday, BE Semiconductor Industries NV (AS:BESI:NA) (OTC: BESIY) received an upgrade from UBS, with analysts moving the stock rating from Neutral to Buy. Accompanying this upgrade, the price target was also raised significantly, from EUR 111.70 to EUR 159.00. The company, currently valued at $11.83 billion, trades at a P/E ratio of 62.69, and according to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The upgrade by UBS comes on the back of a challenging period for BE Semiconductor, which has seen a downturn in packaging and delays in the adoption of its key technology, hybrid bonding. However, UBS analysts project that a turning point may be on the horizon in 2025, with an expected recovery in end demand and new applications for the company’s technology.
Despite recent challenges, InvestingPro data shows the company maintains strong fundamentals with a healthy current ratio of 6.87 and 14 consecutive years of dividend payments. Subscribers can access 15+ additional ProTips and comprehensive analysis through the Pro Research Report.
BE Semiconductor’s current share price suggests a 23% revenue compound annual growth rate (CAGR) from 2024 to 2028, which is in line with consensus estimates. UBS, however, estimates a higher 31% revenue CAGR for the same period.
The firm’s optimism is partly due to the anticipated introduction of fluxless thermal compression bonding (TCB) and the use of hybrid bonding in photonics and high-end tablet applications. Recent financial performance shows promise, with revenue growth of 10.19% over the last twelve months and a strong gross profit margin of 65.46%.
UBS analysts have also revised their earnings per share (EPS) forecasts for BE Semiconductor upwards by 17%, 18%, and 33% for the fiscal years 2025, 2026, and 2027, respectively. This revision is driven by the expected adoption of hybrid bonding technology in new markets and a general recovery in the mainstream market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.