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Taiwan Semiconductor Manufacturing (NYSE:TSM) was lifted to Positive from Neutral by Susquehanna analysts, who also raised the firm’s price target on the stock to $126 from $76 per share.
The analysts told investors in a note that the worst case is dialed into the firm’s estimates and investor expectations.
“The ramp of new products is helping with modest revenue improvement in 2H23 following a severe wafer shipment/revenue decline in 1H23,” the analysts wrote.
“And, with the utilization rate (UR) rebounding in 3Q23 following 30+ points of decline in 1H23, quarterly EPS should rebound at a faster pace than revenues, a trend expected to gain momentum into 2024 as new products are ramped at N3/5 nodes.”
The analysts concluded that upside potential is 45%+, while the downside is limited.
Elsewhere on Monday, ASML Holdings (NASDAQ:ASML) and other chip parts makers fell after a report by Taiwan’s Economic Daily News said TSM intends to cut its capex target to a range of $28 billion to $32B this year.
