Goldman Sachs Upgrades Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) to Conviction Buy
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Price: $18.81 +0.32%
Rating Summary:
5 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
5 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade TSM Now!
Goldman Sachs upgraded Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) from Neutral to Conviction Buy with a price target of $19.00.
The firm expects TSMC's earnings growth to accelerate due to smartphone/tablet growth, as well as new business opportunities from Apple, 3D-packaging, and ARMbased CPUs.
"We expect TSMC to surpass both Intel and Samsung LSI in capex in the critical phase of semiconductor manufacturing in 2013E- 2014E due to its simple and open business model, the evolution of smartphone makers, large TAM and ecosystem R&D, and efficient cost structure. We raise our 12-month P/E-based target price 40% to NT$112 (ADR: +41% to US$19), implying 23% (ADR: 18%) upside potential."
Goldman is raising revenue by 1-6%/EPS forecasts by 0-5% to reflect its market share gain in smartphones and new opportunities in Apple, ARM CPU, and 3D packaging. Their estimates are 8% and 11% above I/B/E/S consensus in 2013E and 2014E, respectively.
For an analyst ratings summary and ratings history on Taiwan Semiconductor Manufacturing Co. Ltd. click here. For more ratings news on Taiwan Semiconductor Manufacturing Co. Ltd. click here.
Shares of Taiwan Semiconductor Manufacturing Co. Ltd. closed at $16.36 yesterday, with a 52 week range of $12.00-$16.49.
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The firm expects TSMC's earnings growth to accelerate due to smartphone/tablet growth, as well as new business opportunities from Apple, 3D-packaging, and ARMbased CPUs.
"We expect TSMC to surpass both Intel and Samsung LSI in capex in the critical phase of semiconductor manufacturing in 2013E- 2014E due to its simple and open business model, the evolution of smartphone makers, large TAM and ecosystem R&D, and efficient cost structure. We raise our 12-month P/E-based target price 40% to NT$112 (ADR: +41% to US$19), implying 23% (ADR: 18%) upside potential."
Goldman is raising revenue by 1-6%/EPS forecasts by 0-5% to reflect its market share gain in smartphones and new opportunities in Apple, ARM CPU, and 3D packaging. Their estimates are 8% and 11% above I/B/E/S consensus in 2013E and 2014E, respectively.
For an analyst ratings summary and ratings history on Taiwan Semiconductor Manufacturing Co. Ltd. click here. For more ratings news on Taiwan Semiconductor Manufacturing Co. Ltd. click here.
Shares of Taiwan Semiconductor Manufacturing Co. Ltd. closed at $16.36 yesterday, with a 52 week range of $12.00-$16.49.
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