Craig-Hallum upgrades Tower Semiconductor to Buy with Intel deal terminated

As previously reported, Craig-Hallum upgraded Tower Semiconductor (TSEM) to Buy from Hold with a price target of $38, down from $53. With Intel’s (INTC) planned acquisition of Tower Semiconductor officially over, the firm now considers the company on a standalone basis. Craig-Hallum believes Tower Semiconductor’s history pre-intel and the comps since then suggest TSEM can sustain a 5-6-times EV/EBITDA multiple. Assuming the $9.23/share in cash that includes the tax-adjusted Intel termination fee, the firm can support a $38 price target.