BE Semiconductor (BESI NA) Netherlands

Technology

the IDEA!

Besi surprised the market at its latest CMD by significantly raising its long-term financial targets for the first time in 3 years - particularly its revenue outlook, which increased by 15-45%. While improvements in gross and operating margin were expected, the scale of the revenue uplift signals strengthening demand for semiconductor back-end equipment and a more optimistic outlook for hybrid bonding. Though these targets lack a fixed timeline, Besi now projects mid-point revenues of €1.7bn, gross profit of €1.1bn and operating profit of €0.8bn, implying EBITDA of €850m. With an EV of €9.25bn, this equates to a modest 11x long-term EV/EBITDA. The upgrade supports a compelling growth story likely to attract renewed investor interest.

- 13 June, 2025

BE Semiconductor (BESI NA) Netherlands

Technology

the IDEA!

Q1 outlook below market expectations - one of BESI’s competitors was also cautious about the start of 2025, as most of the end-markets for the back-end equipment makers remains challenging. The growth of the semiconductors market is solely driven by AI applications, which still represents only a modest part of that industry, particularly in volume terms. While BESI is a great company, analysts at the IDEA! consider it to be heavily overpriced and the upcoming cycle has been more than fully reflected in the current share price.

- 21 February, 2025

BE Semiconductor (BESI NA) Netherlands

Technology

the IDEA!

Announces launch of €350m bond offering - although BESI argues it will use the proceeds for general purposes, the IDEA! argues differently. The proceeds will be used, firstly, to continue its share back programme and, secondly, maintain its pay-out ratio in the range of 40% to 100%. In the past 8 years, BESI has issued 4 convertible bonds. In total the company raised €625m. Of this amount none was spent on acquisitions. It used the money to repurchase shares, i.e. to avoid dilution caused by the issue of the convertible bonds. BESI has such a strong FCF it does not need to issue convertible bonds to finance its operations or to make acquisitions.

- 12 July, 2024

BE Semiconductor (BESI NA) Netherlands

Technology

New Street Research

Chip design is going through a Copernican revolution, switching focus from “small is good” to “big is good”, and hybrid bonding is a key enabler going forward. Like ASML did in lithography, New Street expects BESI to strengthen its competitive position towards the domination of die attach, as it continuously improves the accuracy and throughput of its tools. They expect the shipment of hybrid bonding tools to take off this year, and to grow steadily, as the technology is increasingly adopted across all leading-edge manufacturing segments. This, along with an upcoming cyclical recovery, gives BESI’s EPS the potential to grow 18-26% p.a. over the next 5 years.

- 31 March, 2023

BE Semiconductor (BESI NA) Netherlands

Technology

Arete Research

Upgrades to Buy - stock has over-corrected; extremely well positioned with its hybrid bonding technology. In this note Arete looks at 1) The impact of structural changes to compute architecture and how it benefits advanced packaging and BESI. 2) The likely progress of hybrid bonding driven by customer roadmaps in the high-performance compute space. 3) Why the cyclical risk into 2023 is lower than it was in the 2018/19 downturn. 4) Updated estimates and valuations. TP €74.2 (30% upside).

- 10 June, 2022

FTSEurofirst 80 Index: Bullish & Bearish Themes

Technical Analysis

Messels

Recycling and Renewable Energy stocks such as Umicore, Vestas Wind and Siemens Gamesa are rallying from medium term support. Selective Seafood and Tobacco stocks remain defensive including SalMar, Mowi and Scandinavian Tobacco. Banks are generally rallying in ranges; favours CaixaBank and Sabadell which have already broken out and extend relative bases.

Industrials have broken uptrends and are now losing relative momentum such as Schneider, Atlas Copco and Alfa Laval. Luxury Goods renew their 4-month price and relative tops including Pandora, LVMH, Dior and Hermes. IT Hardware and Semiconductors renew their 5-month price and relative tops; SeSa, BE Semiconductor, Infineon and Nordic Semiconductor are highlighted.

- 27 May, 2022