Optimistic Buy Rating for Benchmark Electronics Amid Solid Performance and Growth OpportunitiesWe are updating our model on BHE following the solid Q2 report earlier this week. We came away from the report and Q3 guide on the margin optimistic about the company’s prospects in the 2H'25 and 2026, despite less clarity on key markets like semi-cap. Q2 revenues were down 3.5% y/o/y, vs. consensus -4%, with in-line margins and EPS. BHE has entered the 2H with continued strong growth in A&D, improving a potential burgeoning opportunity in Advanced Computing & Communications. Guidance for Q3 was in line with expectations. While we are trimming our top-line estimates for 2025 and 2026, we expect steady execution on margins, with potential upside in several market sectors. BHE shares remain attractively valued, in our view, trading at a significant discount to its peer group. Maintain Buy.