BE Semiconductor: stock abandons 175.95 € threshold, BofA slashes target
The Dutch semiconductor equipment manufacturer is experiencing a massive selling session as two brokers revise their outlook on the stock. The decline occurs in a weak European market, with the CAC 40 showing sharp losses at midday.
A 9.5% decline that breaks the 175.95 € support during the session
At 173.75 €, BE Semiconductor shares are down 9.53% from the previous close (192.05 €). The stock has broken through its 175.95 € support level during the session and remains below it. The move pushes it away from its moving averages: the 20-day MA stands at 188.17 €, or 7.66% above the current price, while the 200-day MA is at 213.38 €, nearly 18.6% away.
The RSI at 50 remains neutral despite the scale of the decline, indicating the stock was not in overbought territory before the session. Over three months, losses reach 32.7%, while the year-to-date gain is now limited to 18.4%. In the meantime, the CAC 40 is down 1.11% and the SBF 120 down 1.05%, with the VIX at 15.77 showing no particular tension.
BofA and Barclays adjust their targets, with price objectives still above current levels
Both brokers published their revisions on Tuesday, October 6. BofA Securities downgraded its rating from "buy" to "neutral" and reduced its target from 401 € to 212 €, a level 22% above the current price. Barclays lowered its target from 250 € to 240 € with a market weight rating, leaving approximately 38% upside potential.
In terms of valuation, according to the consensus of analysts surveyed, the stock is trading at approximately 39 times expected earnings for the current fiscal year and 26 times earnings for the following year. The consensus of analysts on the stock remains to be monitored following these two revisions. As a reminder, the stock had already lost 41% over three months at the end of September before recovering toward current levels, and its 175.95 € support is now the key level to watch.
