UPDATE: Bank of America Upgrades Taiwan Semiconductor Manufacturing to Buy on Cyclical Upside

Bank of America upgraded Taiwan Semiconductor Manufacturing

from Underperform to Buy and raised the price objective to $23.04. Bank of America said, "We upgrade our rating to Buy from Underperform. The rest of the group was upgraded in Oct-12 but not TSMC as talk of winning Apple in 2013 seemed to be moving the stock. Instead, underlying cycle indicators have been significantly improving, as we have detailed in our sector note today; All our SCM POs are raised from mid-cycle to our peak-cycle fair value. TSMC has been one of the strongest stocks in Asia but we still think has upside potential as we see 23% earnings growth in 2014." Taiwan Semiconductor Manufacturing closed at $18.95 on Wednesday.