Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) share price jumped 14% on Wall Street yesterday, with a trading volume ten times higher than the average over the past three months, and the stock is rising today on the Tel Aviv Stock Exchange (TASE) as well. The reason is the very favorable recommendation made by Ascendiant Capital Markets, which raised its target price for the company’s share from $15 to $24, reflecting a 113% premium on the market price, after yesterday rise on Wall Street.
Analysts David Williams and Cody Acree recently met with Tower's management, headed by CEO Russell Ellwanger, at an investors’ conference in San Francisco. They write in their survey that small hedge funds and large mutual funds are interested in buying Tower's shares.
The analysts expect a strong quarter for Tower, which will publish its financial results in early August. They also expect a strong guidance for the third quarter.
According to analyst estimates, Tower will earn $1.81 per share this year, and $2.55 next year. Revenue this year will total $830 million, and will reach $997 million next year.
In the report, the analysts mention new customers at the Japanese fab Tower bought from Panasonic, from mid-2015. As for the Indian fab with which Tower is involved, the analysts said, "It seems the project is advancing positively… It looks like the deal will go through.” They expect an official announcement to be made by the end of the year, and for the project to take 3-4 years.
Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2014
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