Investment bank Chardan has reiterated its "Buy" recommendation on Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) ahead of the chip maker's second quarter earnings release next week.
Chardan expects Tower to beat the consensus analyst estimate of $125.2 million revenue and $0.15 earnings per share. Tower's own guidance was for $123-128 million. The investment bank said that strong results by some Tower customers, such as RF Micro Devices (RFMD) Skyworks (SWKS), and Vishay Intertechnology (VSH) may point to revenue at the mid to upper range of guidance.
With the expected strong second quarter, Chardan believes Tower's business will remain strong in the third quarter, pointing again to several Tower customers who have indicated growth continuing into the third quarter.
For the third quarter, Chardan believes that Tower will issue guidance of $128-133 million revenue. Chardan's revenue estimate $130.1 million revenue is essentially the same as the consensus analyst estimate.
Chardan reiterates its "Buy" recommendation and goes so far as to suggest that investors should take advantage of the recent pullback to invest in the company.
Chardan's 12-month price target for Tower shares is $3.10, well more than double its current share price of $1.39.
Published by Globes [online], Israel business news - www.globes-online.com - on August 5, 2010
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