Nomura Securities maintains a 'Buy' on Taiwan Semiconductor (TSM); Weaker PC and TV Impact December Sales

Nomura Securities maintains a 'Buy' on Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM).

Nomura analyst, Patrick Liao, said, "TSMC announced December monthly sales of TWD 31,2bn, down 12.9% m-m and down 10.4% y-y. It is 2.7% lower than our prior estimates of TWD 107.6bn; we believe the gap is the result of lower-than-expected demand in the computer and consumer sectors, especially graphics, HDD and TV. We expect TSMC to see sales decline 5% in 1Q12, in line with the seasonal trend, but better than the average 9% decline in the first quarter each year over the past 10 years. We reiterate our Buy call with a TP of TWD 89, based on 3.2x 2012F BVPS of TWD 28. We apply a 3.2x multiple, which is at the mid-to-high range of the recent trough-to-peak trading multiple."

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 $13.38 yesterday.

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