Jefferies Continues To See Tower As Beneficiary Of Longer-Term Tailwinds

  • Jefferies analyst Mark Lipacis raised the price target on Tower Semiconductor Ltd TSEM to $46 from $42 and kept a Buy after hosting the management team for a day of investor meetings. The price target implies an upside of 19%.
  • The team reiterated its calendar 2022 net income margin target of 15% and expects margins to benefit year-over-year from a richer mix and average selling price increases implemented in 2021 while also saying that it has visibility into 2024, according to Lipacis. 
  • He continues to view Tower as a beneficiary of longer-term tailwinds as its product cycles in 8"/12" RF-SOI, SiPho, SiGe, and Power Management give it exposure to secular markets, the analyst added.
  • Tower reported Q3 FY21 revenue growth of 25% year-on-year to $386.7 million, beating the consensus of $384.97 million. 
  • Tower sees mid-range Q4 revenue of $410 million, with an upward or downward range of 5%, versus the consensus of $393.5 million.
  • Price Action: TSEM shares traded higher by 0.55% at $38.71 on the last check Wednesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorNewsPrice TargetReiterationAnalyst RatingsTechBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!