TowerJazz set to become world's No. 1 specialty foundry
Chardan Capital Markets: TowerJazz will overtake Taiwan's Vanguard International Semiconductor.
Srivatsa reiterated his "Buy" recommendation for TowerJazz with a target price of $2.75, a 95% premium on Friday's close of $1.41 on Nasdaq. He says, "With several of the foundry companies as well as TowerJazz's customers enjoying a strong fourth quarter, we are comfortable with street consensus revenue and non-GAAP earnings per share estimate of $135 million and $0.14, respectively."
Srivatsa's own prediction for TowerJazz is below the consensus; he believes that the company will report $134.9 million revenue on $0.12 and non-GAAP earnings per share. For 2010 as a whole, he predicts non-GAAP earnings per share of $0.55 on $509.1 million revenue.
Srivatsa believes that seasonal weakness by TowerJazz customers will reduce the company's the first quarter revenue by 5% compared with the fourth quarter. However, for 2011 as a whole, he predicts 15% revenue growth to $571.8 million, although non-GAAP earnings per share will dip to $0.55.
Tower's share price rose 1.8% by midday on the TASE today to NIS 5.28.
Published by Globes [online], Israel business news - www.globes-online.com - on January 23, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011
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