Zacks senior technology analyst Steve Biggs, CFA is reiterating his Hold rating on shares of Benchmark Electronics (BHE) today. Here's what his latest report explains:

Benchmark Electronics is making progress in emerging EMS [electronics manufacturing service] markets, such as medical and testing & instrumentation. However, its core computer business is experiencing slowing revenues and still makes up more than half of sales. Strong bookings in the first half of the year should help fuel growth in 2008.

However, over the more near-term, weak guidance for the third quarter should keep a lid on the stock. We therefore reiterate our Hold rating on BHE shares and a six month price target of $23.00.

Shares of Benchmark are currently trading at 14.0x 2007 EPS [earnings per share] estimate of $1.59, a discount to the industry. Overall, we believe BHE is well-positioned in the manufacturing electronics market and should continue to grow over the longer-term as it becomes more efficient and continues booking new programs. However, the company does appear to have more short-term challenges than its peer group. We don't expect significant expansion in its P/E [price-to-earnings] multiple, and believe the shares should remain at a discount to the peer group.