Rodman & Renshaw Outperform On Tower Semiconductor Ltd.

Rodman & Renshaw has an Outperform rating and a $2 price target on shares of Tower Semiconductor Ltd. TSEM after the company announced new revenue guidance. In a note to clients, Rodman & Renshaw writes, "Management expects margins to be marginally lower for the remaining quarters in 2011 and 2012, until its Japan Fab (Micron acquisition to be completed by 2Q11) reaches 90% production capacity. We are revising our model to factor in the improved revenue guidance for 2Q11. Our revised estimates now stand at $139.0 million (up 15% Q/Q) compared to our earlier estimate of $137 million. With a gross margin assumption of 41.5% (down from 44% Q/Q), the non-GAAP EPS estimates remain unchanged at $0.14. For full year, we estimate revenues of $555.6 million (up 9% yoy) and non-GAAP EPS of $0.57 for 2011." Shares of TSEM closed at $1.14 yesterday.