Buy Rating Affirmed: BE Semiconductor Positioned for Growth Amid Co-Packaged Optics Adoption

In a report released today, Nigel van Putten from Morgan Stanley maintained a Buy rating on BE Semiconductor (0XVE – Research Report), with a price target of €145.00.

Nigel van Putten has given his Buy rating due to a combination of factors that highlight BE Semiconductor’s potential for growth. The recent announcement by NVIDIA regarding their next-generation Spectrum-X networking switches, which utilize co-packaged optics technology, underscores the relevance of BE Semiconductor’s hybrid bonding tools. This technology is crucial for the development of advanced semiconductor solutions, and its adoption is expected to expand as it matures.
Despite the anticipated slow adoption of co-packaged optics due to cost and ecosystem challenges, BE Semiconductor is well-positioned to benefit from the gradual integration of this technology. The company’s strong operating leverage and potential for earnings growth in the event of an industry upturn further support the positive outlook. As a result, Nigel van Putten maintains a Buy rating, anticipating that BE Semiconductor’s shares will outperform as hybrid bonding applications continue to grow.