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Publication date: February 27, 2025
BE Semiconductor Industries N.V., commonly known as BESI, has been the wildest kid in the Dutch Tech class for a few years now. Huge rises are followed by solid falls. BESI does score very well over the years, making BESI a popular stock among investors. As indicated in the previous edition of Money Care, today we take a closer look at the company, but most importantly, we determine the short- and long-term opportunities for investors. We can still expect a lot of price movement!
Short introduction BESI:
BESI (BE Semiconductor Industries N.V. ) was founded in 1995. The company originated as a spin-off from Philips, which at the time spun off its back-end semiconductor business. Since then, BESI has developed into a leading player in assembly equipment for the semiconductor industry, with a strong international presence. The company provides machines for the backend production of chips, including those used in smartphones, data centers, automotive electronics and AI applications.
Sales for 2024 were €607.5 million, with BESI earning €182 million in 2024. Around 80% of this result is achieved in Asia with customers in China, Taiwan, South Korea and Malaysia, where many semiconductor manufacturers and assembly companies are located. BESI employs around 1950 people.
BESI in a chart
In the chart over the past five years, you can see the huge price increases of 400%. From early 2024, things get tricky because of the big fierce down turns and solid recovery moves. The wildest kid in the Tech class has tremendous potential but is going through a tough phase right now. This gives great opportunities for the future!
What is the current situation at BESI
The company announced its fourth-quarter 2024 and year-to-date figures last week. The numbers and commentary are clear.
The company reported a 4.9% increase in annual revenue compared to 2023, mainly driven by demand for AI-related applications. Profits increased 2.8%.
Despite these positive annual results, Besi anticipates a challenging first quarter in 2025. The company expects sales to decline 0-10% compared to the fourth quarter of 2024, representing sales between €138 million and €153 million. This expectation is mainly due to continued weakness in the cyclical markets for automotive, smartphones, industrial applications and the Chinese market. In contrast, demand for advanced solutions for AI applications remains strong.
Besi is in a transition phase with solid annual results, but with caution for the near term due to market volatility in traditional segments.
The share price is moving around €115. This gives BESI a market capitalization of € 9.5 billion, making it the smallest Technology player in the AEX. There is even talk of a move back to the AMX (MidCap-Index) once the reweighting starts again in March.
What is the outlook for BESI?
Technical analysts are mostly slightly negative to neutral on BESI's price outlook. Fundamental analysts are predominantly more positive. One speaks of a turnover expectation in 2025 of € 800 million (+30%!) and a price target of € 145.
BESI itself speaks of cautious optimism and expects turnover to pick up especially in the second half of the year.
We take all parameters into account in the algorithmic model and come up with the expectation that BESI may drop a bit further first and then a wonderful buying opportunity will present itself. Below is the price chart showing our most likely scenario.
Currently, the share price stands at €115. The expectation is that BESI can recover to a maximum of € 136 in the short term. Then the pattern will be completed by a decline to the € 92 to € 82 zone. From that level, BESI can continue its strong long-term performance and rise to the €210 to €230 zone.
Conclusion
BESI has a lot of potential, so a buy during a difficult phase at a lower level can work out very well. However, due to the high volatility, one must be prepared to endure considerable interim fluctuations.
Currently, the company is not in the best phase and the price is correcting considerably. You may consider taking BESI into the portfolio at current levels and going for a speculative short-term recovery move. This is expected to be a maximum of 15 to 20%.
The longer-term expectation is that the price will continue to decline to around €85. From there we can expect a rise of about 150% over several years running to about €220.
Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.
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