Bank of America Initiates Coverage on Tower Semiconductor (NASDAQ:TSEM)

Key Points

• Bank of America initiated coverage of Tower Semiconductor with a “buy” rating and a $367 price target, implying 63.33% upside from the prior close.
• Tower reported quarterly results above expectations, with EPS of $0.88 versus $0.76 expected and revenue of $460.08 million; revenue increased 23.7% year over year.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $294.80. Institutional investors own 70.51% of the company’s stock.

Investment analysts at Bank of America initiated coverage on shares of Tower Semiconductor (NASDAQ:TSEM - Get Free Report) in a research note issued to investors on Friday,Benzinga reports. The firm set a "buy" rating and a $367.00 price target on the semiconductor company's stock. Bank of America's price objective suggests a potential upside of 63.33% from the stock's previous close.

TSEM has been the topic of several other reports. UBS Group reiterated a "buy" rating on shares of Tower Semiconductor in a research note on Wednesday, July 15th. Benchmark restated a "buy" rating on shares of Tower Semiconductor in a research note on Wednesday. Susquehanna upped their price target on Tower Semiconductor from $180.00 to $330.00 and gave the company a "positive" rating in a report on Thursday, May 14th. National Bank Financial raised Tower Semiconductor to a "buy" rating in a research report on Friday. Finally, Wedbush lifted their price objective on Tower Semiconductor from $140.00 to $300.00 and gave the stock a "neutral" rating in a report on Thursday, May 14th. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Tower Semiconductor currently has a consensus rating of "Moderate Buy" and a consensus price target of $294.80.

Tower Semiconductor Stock Up 6.4%

Shares of NASDAQ:TSEM opened at $224.70 on Friday. The company has a debt-to-equity ratio of 0.04, a current ratio of 4.91 and a quick ratio of 4.92. The company has a market cap of $25.27 billion, a PE ratio of 88.81 and a beta of 0.90. The stock's 50-day moving average is $244.88 and its 200 day moving average is $200.48. Tower Semiconductor has a 1 year low of $45.51 and a 1 year high of $319.94.

Tower Semiconductor (NASDAQ:TSEM - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The semiconductor company reported $0.88 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.76 by $0.12. The company had revenue of $460.08 million during the quarter, compared to the consensus estimate of $454.68 million. Tower Semiconductor had a net margin of 16.94% and a return on equity of 9.83%. Tower Semiconductor's revenue was up 23.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.41 earnings per share. Sell-side analysts anticipate that Tower Semiconductor will post 3.04 EPS for the current year.

Institutional Trading of Tower Semiconductor

Several large investors have recently modified their holdings of the company. Price T Rowe Associates Inc. MD lifted its holdings in Tower Semiconductor by 3,222.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,682,152 shares of the semiconductor company's stock valued at $549,779,000 after acquiring an additional 4,541,235 shares during the period. Vanguard Group Inc. grew its stake in shares of Tower Semiconductor by 1.2% during the 4th quarter. Vanguard Group Inc. now owns 4,338,080 shares of the semiconductor company's stock valued at $507,317,000 after purchasing an additional 53,112 shares during the period. Migdal Insurance & Financial Holdings Ltd. increased its position in shares of Tower Semiconductor by 0.8% during the 4th quarter. Migdal Insurance & Financial Holdings Ltd. now owns 3,002,806 shares of the semiconductor company's stock valued at $352,589,000 after purchasing an additional 25,000 shares during the last quarter. Goldman Sachs Group Inc. increased its position in shares of Tower Semiconductor by 214.7% during the 4th quarter. Goldman Sachs Group Inc. now owns 2,206,467 shares of the semiconductor company's stock valued at $259,083,000 after purchasing an additional 1,505,421 shares during the last quarter. Finally, Wellington Management Group LLP lifted its stake in shares of Tower Semiconductor by 0.7% in the 3rd quarter. Wellington Management Group LLP now owns 2,108,004 shares of the semiconductor company's stock worth $152,409,000 after purchasing an additional 15,461 shares during the period. Institutional investors own 70.51% of the company's stock.

Tower Semiconductor Company Profile

Tower Semiconductor, traded on NASDAQ under the symbol TSEM, is a specialty foundry company that provides analog and mixed-signal semiconductor manufacturing services to a broad array of customers worldwide. The company focuses on delivering tailored process technologies for high-growth markets, including radio frequency (RF), power management, imaging, automotive electronics, and Internet of Things (IoT) applications. By combining deep process know-how with flexible manufacturing capabilities, Tower Semiconductor supports the development and volume production of advanced semiconductor devices for fabless and integrated device manufacturer customers.

The company's technology portfolio spans standard and specialty processes such as CMOS, BiCMOS, high-voltage, radio frequency, silicon photonics, micro-electromechanical systems (MEMS) and image sensor production.

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