Tower Semiconductor Receives a Buy from Needham

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 closed yesterday at $25.

Gill observed:

“We are lowering our PT to $32 following 1Q’18’s earnings miss. We believe investors underestimated the inherent volatility of the RF smartphone exposure (20% of sales) and impact from AAPL (caused the 3% miss). In the past TSEM has mitigated the impact through pre-payments and RF supplier diversification, however, the magnitude of the order cut was too great. While we change our rating to Buy from Strong Buy, we still believe the secular demand drivers for high performance analog remain intact and expect capacity expansion in 2H18/1H19 and a positive impact on TSEM’s sales and EPS in 2019.”

According to TipRanks.com, Gill is a top 100 analyst with an average return of 20.8% and a 65.6% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Everspin Technologies Inc, Smart Global Holdings Inc, and Adesto Technologies Corp.

Currently, the analyst consensus on Tower Semiconductor is Moderate Buy and the average price target is $39, representing a 56.0% upside.

In a report released today, Drexel Hamilton also reiterated a Buy rating on the stock with a $46 price target.

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The company has a one-year high of $36.69 and a one-year low of $22.10. Currently, Tower Semiconductor has an average volume of 889.7K.

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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.