Tower Semiconductor (TSEM) PT Raised to $20 at Needham & Company Following Q2 Results; Top Rating Maintained

Needham & Company analyst Rajvindra Gill reiterated a Strong Buy rating and lowered raised his price target on Tower Semiconductor (NASDAQ: TSEM) to $20.00 (from $18.00) following record Q2 results.

Gill commented, "TSEM posted a significant beat and raise qrt. driven by strength across all of its products, particularly in CMOS image sensors and RF. Importantly, based on the 3Q revenue guidance, the company is on a $1.3 billion annualized run-rate and $150 million annualized net profit. TSEM is on track to generate over $100 million of free cash flow this year or $1/share and $200 million in 2017 or $2/share. Organically (ex-Panasonic, ex-MXIM fab), TSEM grew 30% year-over-year in the 1H16 owing to share gains in the RF front-end module space, higher power management sales in auto, industrial and IoT and robust CMOS image sensor sales sold to industrial, medical and machine vision. With TSEM currently trading at 4x 2017 EV/EBITDA and less than 7x 2017 FCF, we believe the stock is undervalued and we are increasing our PT to $20."

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 $13.69 yesterday.

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