Needham analyst Rajvindra Gill maintained a Buy rating on Tower Semiconductor (TSEM) today and set a price target of $21. The company’s shares closed yesterday at $18.21.
Gill noted:
“TSEM posted a solid quarter and guide in light of the volatile macroeconomic climate. We were encouraged that the Panasonic impact could be mitigated, both on the revenue and net income lines, by organic growth drivers, cost reductions and lower MI and tax rate, which prompted our estimate cut prior to the earnings. In addition, we are seeing some stabilization in the smartphone RF segment this year after declining nearly 30% Y/Y and forecast a reacceleration in growth in CY20 driven by 5G. Despite the macroeconomic slowdown, we believe the organic growth drivers in SiGe, power management, and 300mm ramps, remain intact and the company is adding the capacity accordingly. Net, after a tough year in CY18 (down 45%), we could see a recovery in the shares as TSEM executes on its strategic vision.”
According to TipRanks.com, Gill is a 5-star analyst with an average return of 11.9% and a 57.0% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Everspin Technologies Inc, Smart Global Holdings Inc, and Adesto Technologies Corp.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Tower Semiconductor with a $21 average price target.
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Based on Tower Semiconductor’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $38.07 million. In comparison, last year the company had a net profit of $147 million.
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Tower Semiconductor Ltd. engages in the manufacture of integrated circuits. Its products include semiconductors and integrated circuits used in consumer electronics, personal computers, communications, automotive, industrial, and medical device products. The company was founded in 1993 and is headquartered in Migdal Haemek, Israel.
