UPDATE: Bank of America Upgrades Taiwan Semiconductor Manufacturing Co. Ltd. to Buy, Raises PT as Growth Cycle is On Track

In a report published Monday, Bank of America analyst Daniel Heyler upgraded the rating on

from Neutral to Buy, and raised the price target from $21.66 to $27.62. In the report, Bank of America noted, “Following our ‘Breakout 2014 Year Ahead' thesis for TSMC (Dec-2013), we deem 2015 to [be] a ‘Solid Year.' After our tactical shift to neutral in July (inventory-concerns) we upgrade to buy on (1) shallow 1Q15 trough, (2) raised 2015 logic IC growth and (3) raised market share assumptions (28/20/16nm): Raising 2015/16 EPS by 10% and PO by 26% since target P/E goes from mid-cycle (12.6x) to up-cycle (14.3x).” Taiwan Semiconductor Manufacturing Co. Ltd. closed on Friday at $22.74.