Needham & Company Re-Instates Benchmark (BHE) at Hold

Needham & Company analyst James Ricchiuti initiates coverage on Benchmark (NYSE: BHE) with a Hold rating.

The analyst commented, "We are resuming coverage of Benchmark Electronics with a Hold rating. The company is facing headwinds in two areas that are impacting the outlook for this year and next. A delayed recovery for BHE’s OEMs in the company’s higher-margin semi-cap business represents an overhang over the balance of 2019. Looking out to 2020, we are assuming virtually no growth in the overall business, but this mainly reflects the elimination of a large legacy computing contract with particularly low margins. With a new CEO, BHE is likely to get a fresh look from investors, particularly as it continues its focus on high-value vertical markets. As we get more clarity on the various put-and-takes on BHE in the coming months, we would look to get more constructive on the name, particularly on pullbacks in the shares."

For an analyst ratings summary and ratings history on Benchmark click here. For more ratings news on Benchmark click here.

Shares of Benchmark closed at $27.23 yesterday.

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