Needham analyst Rajvindra Gill maintained a Buy rating on Tower Semiconductor (NASDAQ: TSEM) today and set a price target of $32. The company’s shares opened today at $22.38, close to its 52-week low of $21.88.
Gill observed:
“Tower is down -10% in the past week and is down -35% YTD (vs. SOX of +11% and -2%, respectively). We believe the recent sell-off does not make sense given its competitors (Vanguard, Hua Hong) are up for the year and are in some instances trading at P/E 20x (TSEM is now trading at 10x). We believe the Apple overhang is resolved, and contend that the ramp in SiGe capacity for 2H18 is on track. The Panasonic renewal agreement is still ongoing; however, after recent discussions with mgt. we believe TSEM will structure an arrangement that’s a win-win for both parties. Net, we like TSEM as a 2H18 play as margins should expand and capacity comes online.”
According to TipRanks.com, Gill is a top 100 analyst with an average return of 22.5% and a 70.3% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Smart Global Holdings Inc, Everspin Technologies Inc, and Adesto Technologies Corp.
Tower Semiconductor has an analyst consensus of Moderate Buy, with a price target consensus of $39.
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The company has a one-year high of $36.69 and a one-year low of $21.88. Currently, Tower Semiconductor has an average volume of 784.2K.
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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.
