James Ricchiuti, an analyst from Needham, maintained the Buy rating on Benchmark Electronics (BHE – Research Report). The associated price target is $48.00.
James Ricchiuti has given his Buy rating due to a combination of factors that highlight Benchmark Electronics’ potential for growth despite current challenges. The company demonstrated resilience in its recent earnings performance, managing to deliver solid results even with some demand impact from tariffs late in the first quarter. While there are ongoing weaknesses in certain sectors like Medical, Industrial, and Advanced Computing & Communications, Benchmark Electronics has shown strength in the semiconductor capital equipment and aerospace & defense verticals, which experienced double-digit growth year-over-year.
Looking forward, Ricchiuti anticipates that these sectors will continue to be strong performers through 2025, with gradual improvements expected in the medical and industrial sectors. Although the revenue guidance for the second quarter is slightly below expectations, the company’s margins were in line with guidance, and the non-GAAP EPS was at the upper end of the range. This performance, coupled with a stable earnings per share outlook, supports the Buy rating as Benchmark Electronics is positioned to capitalize on its strengths and navigate through macroeconomic uncertainties.