BESVF - BE Semiconductors - Significant Outperformance To Significant Overvaluation

2024-06-26 18:03:42 ET

Summary

• I recommend a "HOLD" rating for BESI with a price target of €84/share, advising to trim positions due to inflated valuation levels.
• BE Semiconductor (BESI) has outperformed the market but remains overvalued with a P/E ratio of over 60x.
• Despite being a market-leading company in the semiconductor sector, BESI's valuation is too high for investment at this time.

Dear readers/followers,

I've been covering BE Semiconductors ( BESIY ), or just straight 'BESI' for a few years at this point, and I've also been an active investor in the company for a few years as well. In my last article, I maintained my neutral "HOLD" recommendation for the company and clarified that I was rotating my position in the company due to overvaluation.

Since that time, this stance has outperformed. The company was by the market considered overvalued and has moved sideways - up 5.44% exclusive of dividends since my last article in December, which you can find here . The market at the same time is up almost 15%....

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