Wedbush Sees Tower Semiconductor Q1 Beat with 15% Revenue Growth and $80 PT
Wedbush projects Tower Semiconductor will post Q1 revenue of $525 million, up 15% year-on-year, and adjusted EPS of $0.38, exceeding consensus forecasts by 12%. The firm raised its price target to $80, citing robust fab utilization and accelerating demand in analog and RF markets.
1. Q1 Financial Forecast
Wedbush forecasts Tower Semiconductor’s Q1 revenue at $525 million, representing a 15% increase year-on-year, and anticipates adjusted EPS of $0.38, which would mark a 12% outperformance versus current street estimates.
2. Analyst Upgrade and Price Target
Based on the anticipated beat, Wedbush upgraded Tower Semiconductor’s rating and raised its price target from $70 to $80, signaling stronger conviction in the company’s near-term margin expansion and cash flow generation.
3. Demand and Utilization Drivers
The upgrade reflects robust fab utilization rates rising above 90%, driven by accelerating orders in analog and RF segments, as well as ongoing inventory restocking among key IDM and IDM-fabless customers.