Needham Believes Tower Semiconductor (NASDAQ: TSEM) Still Has Room to Grow

By Carrie Williams

In a report released today, Rajvindra Gill from Needham reiterated a Buy rating on Tower Semiconductor (NASDAQ: TSEM), with a price target of $35. The company’s shares closed yesterday at $23.80, close to its 52-week high of $25.89.

Gill commented:

“Over the past two days we hosted a series of investor meetings in Boston and NYC with CEO Russell Ellwanger and VP of IR Noit Levy- Karoubi. We see a number of growth drivers in the organic business (machine vision, ADAS, electrification, RF). We think an overlooked yet salient benefit of the business model is its visibility: 2/3 of sales is guaranteed and/or under special agreements and the remaining 1/3 is sole-sourced. We also see options to expand capacity beyond $1.6B, which we think they will reach in 2019, such as greenfield oppty. in China, and expanding capacity at the MXIM fab.”

According to TipRanks.com, Gill is a top 100 analyst with an average return of 21.4% and a 65.9% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Everspin Technologies Inc, Smart Global Holdings Inc, and Adesto Technologies Corp.

Tower Semiconductor has an analyst consensus of Moderate Buy, with a price target consensus of $33.

The company has a one year high of $25.89 and a one year low of $11.25. Currently, Tower Semiconductor has an average volume of 573.8K.

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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.