Back to top

Bear of the Day

Tessera Technologies, Inc. (TSRA) is a provider of back-end technology for semiconductor manufacturing. Its technology enables miniaturization of electronic goods, which is a driver of IC sales in the market today. However, protection of intellectual property (IP) for a company this small is a challenge, as are the inherent pricing pressures in the sluggish DRAM market.

Tessera's near-term revenues are at risk. First, Micron, a major customer, was due to renew its license in May this year, but there is still no news that this has in fact been done. Tessera is also in legal battles with other big customers, such as Amkor and Powertech.

Additionally, the shares are trading at a significant premium (115.4%) to the peer group based on our estimates for 2013, while historically, the maximum premium has been just 13.5%. Therefore, despite the significantly higher earnings power, we consider investment in the shares risky. We therefore have an Underperform rating on TSRA shares, supported by a target price of $13.00 (37.1X P/E based on 2013 earnings estimate).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%