Needham & Company Starts Tower Semiconductor (TSEM) at Strong Buy

Needham & Company initiates coverage on Tower Semiconductor (NASDAQ: TSEM) with a Strong Buy rating and a price target of $18.00.

Analyst Rajvindra Gill commented, "We are initiating coverage of Tower Semiconductor with a Strong Buy and establishing a 12-month $18 price target. TSEM is a specialty analog foundry targeting high-performance applications, such as RF and high-performance amplifiers, CIS, and power management. TSEM is aligned with numerous secular growth markets in the semiconductor industry including: 1) the proliferation of wireless front-end module content; 2) demand for power management solutions, 3) development of IoT systems and 4) specialty CMOS image sensors. At a $1B revenue run-rate (plus enough capacity to increase sales 50% to $1.5B) and our base case estimates of $200MM+ in FCF generation ($2/share) in 2017, we believe TSEM is significantly oversold and inexpensive at current levels (trading at <6x 2017 FCF)."

For an analyst ratings summary and ratings history on Tower Semiconductor click here. For more ratings news on Tower Semiconductor click here.

Shares of Tower Semiconductor closed at $11.86 yesterday.

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