Jefferies Continues To See Tower As Beneficiary Of Longer-Term Tailwinds - Tower Semiconductor (NASDAQ:TSEM)

Jefferies analyst Mark Lipacis raised the price target on Tower Semiconductor Ltd TSEM to $46 from $42 and kept a Buy after hosting the management team for a day of investor meetings. The price target implies an upside of 19%.
The team reiterated its calendar 2022 net income margin target of 15% and expects margins to benefit year-over-year from a richer mix and average selling price increases implemented in 2021 while also saying that it has visibility into 2024, according to Lipacis.
He continues to view Tower as a beneficiary of longer-term tailwinds as its product cycles in 8"/12" RF-SOI, SiPho, SiGe, and Power Management give it exposure to secular markets, the analyst added.
Tower reported Q3 FY21 revenue growth of 25% year-on-year to $386.7 million, beating the consensus of $384.97 million.
Tower sees mid-range Q4 revenue of $410 million, with an upward or downward range of 5%, versus the consensus of $393.5 million.
Price Action: TSEM shares traded higher by 0.55% at $38.71 on the last check Wednesday.