Tower Semiconductor stock: Stifel cuts target to $235
Published on 11/05/2026 at 11:08 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSAnalysts Reassess Tower Valuation
- Stifel retained its Buy rating while lowering its valuation target after Tower's strong third-quarter performance.
- Tower's fourth-quarter revenue guidance stands above Wall Street expectations, supported by silicon photonics demand and expanding customer commitments.
- Capacity plans include additional silicon photonics output and a larger Fab 7 manufacturing footprint.
Stifel has lowered its price target for Tower Semiconductor while keeping a Buy rating, adding a valuation caution to the foundry's strong operating outlook. The analyst action was reported by Investing.com on Tuesday, November 3, 2026.
Stifel cut its target from 270 US dollars to 235 US dollars, a reduction of 35 US dollars or 12.96 percent, while retaining its Buy recommendation. The bank cited valuation and contracted peer multiples rather than a deterioration in Tower's reported operating performance.
Strong Results Meet Higher Expectations
Tower reported record third-quarter revenue of 526 million US dollars on November 2, up 33 percent from the year-earlier period. The company also posted gross profit of 179 million US dollars and net profit of 120 million US dollars, with diluted earnings per share of 1.05 US dollars.
Fourth-quarter revenue guidance is centered on 600 million US dollars, with a range of plus or minus 5 percent. Tower said the midpoint implies 36 percent year-over-year growth and 14 percent sequential growth, supporting a 2026 revenue target of 2 billion US dollars.
Investing.com reported that the guidance was about 3.5 percent above Wall Street expectations. The same report said Stifel raised its estimates even as it reduced the target multiple applied to the shares. That combination points to a distinction between improving operating expectations and a more demanding valuation framework.
Capacity Expansion Remains Central
The analyst report highlighted Tower's silicon photonics expansion and customer commitments extending into 2029. Track 1 is ahead of schedule for production starts in the third quarter of 2027, with planned capacity of about three times the silicon photonics start capacity recorded in the third quarter of 2026.
Fab 7 is planned to expand from about 10,000 to 40,000 300mm wafers per month as Track 2 ramps in 2029. These projects could support longer-term revenue growth, but they also leave execution, utilization and valuation as important considerations for investors.
Tower Semiconductor stock traded at 129.75 euros on Lang & Schwarz at 11:04 CET on Thursday, November 5, 2026.
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Tower Semiconductor at a Glance
- Company: Tower Semiconductor Ltd.
- ISIN: IL0010823792
- WKN: 893169
- Tickers: TSEM on NASDAQ; TSEM on TASE
- Lang & Schwarz quote: 129.75 euros at 11:04 CET on November 5, 2026
- Analyst action: Stifel target reduced from 270 to 235 US dollars; Buy rating maintained
