Needham Believes TSEM Won’t Stop Here

By Carrie Williams

Needham analyst Rajvindra Gill reiterated a Buy rating on Tower Semiconductor (NASDAQ: TSEM) today and set a price target of $25. The company’s shares opened today at $17.20, close to its 52-week high of $17.76.

Gill wrote:

“TSEM posted a beat and raise qrt- with revenue of $326 million, non-GAAP EPS of $0.48, and GM of 25.9%. Based on the 4Q revenue guidance, the company is on track to achieve a $1.25 billion annualized run-rate, a $166 million annualized net profit and over $100 million of free cash flow this year or $1/share and $200 million in 2017 or $2/share. TSEM continues to gain market share in the CMOS image sensor space as well as its RF front-end module space and is increasing its utilization rates across all Fabs. Net, we continue to be optimistic towards TSEM’s business model and ability to increase net profit, margins, and free cash flow and are increasing our price target to $25.”

According to, Gill is a top 100 analyst with an average return of 12.8% and a 57.6% success rate. Gill covers the Technology sector, focusing on stocks such as Everspin Technologies Inc, Adesto Technologies Corp, and Silicon Laboratories.

Tower Semiconductor has an analyst consensus of Moderate Buy, with a price target consensus of $25.

Based on Tower Semiconductor’s latest earnings report for the quarter ending June 30, the company posted quarterly revenue of $305 million and quarterly net profit of $38.49 million. In comparison, last year the company earned revenue of $244 million and had a net profit of $13.55 million.

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.