Susquehanna starts Tower Semiconductor at Neutral with ‘conservative’ estimates

As previously reported, Susquehanna analyst Mehdi Hosseini initiated coverage of Tower Semiconductor with a Neutral rating and $36 price target as the firm expanded its foundry research to more fully analyze increased content of specialty substrates/analog in key growth applications. With Tower, there remain prospects of revenue growth acceleration into 2025 as content per device for key substrates increase while “new killer apps” like Apple’s (AAPL) Vision Pro can eventually help expand the existing total addressable market. However, the firm prefers to be conservative with its estimates as it still doesn’t have visibility on the adoption rate, the analyst tells investors.