Kulicke & Soffa price target lowered to $53 from $55 at Needham

Needham lowered the firm’s price target on Kulicke & Soffa to $53 from $55 and keeps a Buy rating on the shares. Needham sees 2025 as likely the peak WFE, saying the current semiconductor upcycle “will be lukewarm,” and the next downturn could hit in the second half of 2026. The firm adds that while it is modeling relatively moderate growth for wire bonders over the next two years – consistent with its thesis that the new upcycle is mild – after years of capacity digestion following the 2021-2022 peak, the wire bonder market should start to recover in 2025, with growth that could last into 2026, the analyst tells investors in a research note.