BESI Lifts Long-Term Revenue, Margin Forecasts on Strong AI Demand
BE Semiconductor Industries Raises Financial Targets Amid AI Boom
By Nathan Vifflin
June 18 (Reuters) - Dutch semiconductor equipment maker BE Semiconductor Industries (BESI) on Thursday raised its long-term revenue and operating margin targets, citing improved order momentum and stronger demand for data centre and photonics applications.
BESI Stock Performance and Market Expectations
BESI stock has risen over 100% since the beginning of the year, reflecting investor expectations for adoption of its advanced packaging tools as chipmakers seek new ways to increase computing power for AI. The shares were broadly flat in early trading.
Investor Sentiment and Share Price Movement
The company said it now targets revenue of 1.7 billion euros to 2.2 billion euros ($1.96 billion to $2.54 billion), up from 1.5 billion euros to 1.9 billion euros, ahead of its 2026 investor day in Amsterdam.
Operating Margin Targets and Timeline
It also raised the lower end of its operating margin target to 45% from 40%, while keeping the upper end unchanged at 55%.
The company did not give a timeframe for achieving the targets.
Analyst Reactions and Market Outlook
"While the long-term structural drivers remain intact,(...)the guidance increase appears largely anticipated and reflected in consensus positioning," said ING analyst Marc Hesselink in a research note.
Hesselink said he does not rule out profit-taking following the event, given the high valuation.
Additional Information
($1 = 0.8678 euros)
(Reporting by Nathan Vifflin in Gdansk; Editing by Varun H K and Matt Scuffham)
