Barclays initiates Tower Semiconductor stock coverage with Equalweight rating

Published 18/09/2025, 08:30
Barclays initiates Tower Semiconductor stock coverage with Equalweight rating

Investing.com - Barclays has initiated coverage on Tower Semiconductor (NASDAQ:TSEM) with an Equalweight rating and a $74.00 price target on Thursday. The stock, currently trading at $67.80, has shown remarkable momentum with a 67.2% return over the past year and is approaching its 52-week high of $68.70.

Tower Semiconductor is a specialty foundry that manufactures customized analog semiconductor solutions including power management, radio frequency, sensors, and imaging chips for automotive, medical, consumer, and industrial markets. According to InvestingPro analysis, the company maintains strong financial health with an impressive current ratio of 6.57, indicating robust operational efficiency.

Barclays highlighted Tower’s exposure to high-growth Silicon Photonics and Silicon Germanium technologies, which are heavily used in AI data centers and represent the company’s fastest-growing segments.

The research firm noted Tower’s diversified end markets and geographical spread across Israel, Japan, the US, and Italy, along with its track record of successful partnerships with companies like ST Microelectronics and Intel to share facility capacity.

Barclays also pointed to Tower’s strong balance sheet with a net cash position of $1 billion (representing 14% of market cap) and its ambitious roadmap targeting $2.7 billion in revenue run-rate with 21%+ operating margin once its $1.2 billion capital expenditure program is complete.

In other recent news, Tower Semiconductor reported stronger-than-expected earnings for the second quarter of 2025. The company’s earnings per share (EPS) came in at $0.50, surpassing the analyst forecast of $0.43, representing a 16.28% positive surprise. Additionally, Tower Semiconductor’s revenue reached $372 million, slightly above the expected $371.26 million. In a separate development, Benchmark has raised its price target for Tower Semiconductor to $73.00 from the previous $66.00, while maintaining a Buy rating. This adjustment follows a recent discussion with the company’s Senior Director of Strategic Marketing and Investor Relations at Benchmark’s 12th Annual TMT Conference. These developments highlight the company’s recent performance and future outlook as observed by analysts.

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