Investing.com -- BE Semiconductor (AS:BESI) has been upgraded to a “buy” rating from “hold” by Deutsche Bank analysts, with the target price increasing from €95 to €125.
In its latest earnings report, Besi missed Q1 booking expectations, and its guidance for Q2 was also weak.
The company cited a lack of cyclical recovery in key sectors, including smartphones, PCs, industrials, and automobiles.
Analysts noted that OSAT utilization has not yet reached the critical 90% level needed for customers to reorder, adding to the softness in demand.
Despite these challenges, Besi’s short lead times on equipment are seen as a positive factor. Analysts are also optimistic about the company’s outlook for hybrid bonding (HB).
Industry conversations suggest Besi could see a significant increase in HB bookings in the second half of 2025, with strong support from companies like TSMC, Micron (NASDAQ:MU), and Intel (NASDAQ:INTC).
This growth is expected to build momentum in 2026 and beyond, outpacing expectations for 2025.