Rodman & Renshaw Positive on Tower Semiconductor's Solid 3Q

Rodman & Renshaw has published a research report on Tower Semiconductor

after the company reported solid 3Q results up sharply y/y. In the report, Rodman & Renshaw writes, "TSEM reported strong 3Q11 financial results with revenues up 31% Y/Y and 26% Q/Q to $176.1mn, in-line with its guidance range and below our estimates of $183.0mn. Non GAAP earnings declined 4% Q/Q to $45.8 million ($0.14 per share) and came below our forecasts of $49.0mn ($0.16). Revenue growth was primarily from Micron acquisition, which contributed for one full-quarter. Despite weakness in the broader market, overall utilization was at 70%. Jazz subsidiary saw weakness in its markets and had poor utilization. Operating margins contracted 9 percentage points to 22.2%. Cash balances were $178 million as compared to $139 million in last quarter." Rodman & Renshaw maintains its Market Outperform rating and $1.50 price target on Tower Semiconductor, which closed yesterday at $0.77.