Goldman Sachs Upgrades Taiwan Semiconductor (TSM) to Conviction Buy

Goldman Sachs upgraded Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) from Neutral to Buy and added the stock to their Conviction Buy list. The firm raised their price target to NT$90/US$15 from NT$64/US$11.60.

The firm sees four catalysts to spur robust growth: "(1) TSMC could become a supplier for Apple's (Nasdaq: AAPL) A6 processor, which we estimate could represent 2.5% of 2012E revenue; (2) TSMC has US$5.4 higher content in smartphones than in feature phones – non-iPhone smartphones’ growth could contribute 1.9%; (3) TSMC's initial market share at 28nm is nearly 100%, above that of 90% in 40nm – we see this catalyst accounting for 1.5% of 2012E revenues; and (4) non-iPad tablets growth could account for 0.3%. In the medium term, we believe the growth of the global middle-class population, rather than GDP, will be the key driver of semi demand."

For more ratings news on Taiwan Semiconductor Manufacturing Co. Ltd. click here and for the rating history of Taiwan Semiconductor Manufacturing Co. Ltd. click here.

Shares of Taiwan Semiconductor Manufacturing Co. Ltd. closed at $12.56 yesterday.

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