Navigating 9 Analyst Ratings For Taiwan Semiconductor

In the last three months, 9 analysts have published ratings on Taiwan Semiconductor TSM, offering a diverse range of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $172.11, a high estimate of $200.00, and a low estimate of $145.00. Witnessing a positive shift, the current average has risen by 13.69% from the previous average price target of $151.38.

Understanding Analyst Ratings: A Comprehensive Breakdown

The perception of Taiwan Semiconductor by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Taiwan Semiconductor. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Taiwan Semiconductor compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

For valuable insights into Taiwan Semiconductor's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Taiwan Semiconductor analyst ratings.

Delving into Taiwan Semiconductor's Background

Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with almost 60% market share. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple, AMD, and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs. TSMC employs more than 73,000 people.

Taiwan Semiconductor: A Financial Overview

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Positive Revenue Trend: Examining Taiwan Semiconductor's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 16.52% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Taiwan Semiconductor's net margin excels beyond industry benchmarks, reaching 38.05%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 6.38%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Taiwan Semiconductor's ROA excels beyond industry benchmarks, reaching 3.98%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.28, Taiwan Semiconductor adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.