Tower sees $3.5b annual revenue in long term

Russell Ellwanger Photo: Eyal Yizhar

The Israeli semiconductor company's current annual sales are $1.4 billion.

Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) (marketed as Tower-Jazz) yesterday held a conference for investors in New York, and analysts hurried to revise their forecasts for the company. Drexel Hamilton raised its target price for Tower Semiconductor's share from $38 to $46, a 33% premium on the yesterday's closing price on Wall Street. The company's share price has climbed 33% this year. Drexel Hamilton retained its "Buy" recommendation.

During the conference, Tower Semiconductor presented a long-term strategy with especially ambitious sales guidance: $3.5 billion a year, compared with its current annual sales pace of $1.4 billion. The company hopes to achieve this by both bolstering its internal production capacity and through future mergers and acquisitions.

Relatively speaking, however, Drexel Hamilton analyst Cody Acree can be considered a conservative. Needham & Co. raised its target price for Tower Semiconductor's share from $45 to $50, a 45% premium on yesterday's closing price in New York. Needham's analysts retained their "Strong buy" recommendation for the share. Under a "Clear Skies on the Horizon" headline, they write that they have been very impressed by the company's ability to grow.

Needham also endorsed what Tower Semiconductor's management said, writing that they were confident in the company's ability to reach its $3.5 billion annual sales target, which would raising its estimated annual profit to $520 million.

Published by Globes [online], Israel Business News - www.globes-online.com - on November 30, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Russell Ellwanger Photo: Eyal Yizhar
Russell Ellwanger Photo: Eyal Yizhar
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