Drexel Hamilton Reiterates Bullish View TowerJazz (TSEM) Following Solid Q3

TowerJazz (NASDAQ: TSEM) reported solid September quarter results that were slightly ahead of the Street consensus. Sales of $244.2 million were slightly ahead of the Street consensus of $243.8 million. Adjusted EPS was $0.60, slightly ahead of the Street consensus of $0.57.

The company is guiding Dec. quarter revenue to be $252 million, +/- 5%, which is ahead consensus of $249.9 million. The company's guidance achieved its prior goal of $1 billion in annualized revenue by the end of 2015.

Cody Acree from Drexel Hamilton noted that one of the most encouraging points from the press release, was Tower’s announcement that now three strategic customers have paid a total thus far of $45 million to reserve production capacity for 2016 and beyond. Results are showing strength in its RF business, broad organic growth, and the beginnings of a strong ramp of TPSCo activity, which bodes well for 2016 and 2017.

Reiterate Buy rating and $28 target price.

For an analyst ratings summary and ratings history on Tower Semiconductor click here. For more ratings news on Tower Semiconductor click here.

Shares of Tower Semiconductor closed at $14.40 yesterday.

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