Needham starts Tower at "Strong Buy"

Russell Ellwanger  photo: Eyal Yitzhar
Russell Ellwanger photo: Eyal Yitzhar

Needham & Company has joined a series of investment houses with aggressive recommendations for the Israeli semiconductor company. 

At the end of last week, Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) (which trades as TowerJazz) received initial analyst coverage from Needham & Company, which rates the stock a "Strong Buy" with a price target of $18, 50% higher than Friday's closing price in New York of $11.99.

Under the headline "Rough Diamond", Needham says that with annual revenue close to $1 billion and sufficient production capacity to reach $1.5 billion, Tower is oversold, and is cheap at current price levels.

Tower has received several very bullish recommendations lately. Oppenheimer said in a recent review that the company was still one of the best in the semiconductor industry, and reiterated an "Outperform" rating with a $20 price target.

Last week, Drexel Hamilton reiterated its "Buy" rating, with an especially aggressive price target of $28.

On the Tel Aviv Stock Exchange this morning, Tower Semiconductor's share price is up 1.93% at NIS 48.63.

Published by Globes [online], Israel business news - www.globes-online.com - on January 24, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Russell Ellwanger  photo: Eyal Yitzhar
Russell Ellwanger photo: Eyal Yitzhar
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