Zacks Investment Research is not worried about the drop in the share price of specialty foundry Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) over the past year, and reiterated its "Outperform" recommendation for the share with a six-month target price of $4 - a 233% premium on yesterday's close on Nasdaq of $1.20.
Zacks says, "Over the past year the firm has been building capacity due to accelerated design-win momentum, which have been realized within a large group of diversified, global customers, many of which being market share and technology platform leaders for their respective markets."
Zacks predicts that Tower will make earnings per share of $0.56 on $561 million revenue in 2011.
Zacks says that Tower "got to work" on meeting its target of $1 billion in annual sales by 2014, when it signed a non-binding agreement to buy the Japanese foundry of Micron Technologies Inc. (NYSE: MU) - a deal that will double Tower's production capacity.
Tower's share price fell 1.2% on Nasdaq yesterday to $1.20, giving a market cap of $316 million, but rose 1.2% in morning trading on the TASE today to NIS 4.28.
Published by Globes [online], Israel business news - www.globes-online.com - on May 19, 2011
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