As reported earlier, Needham analyst Rajvindra Gill downgraded TowerJazz to Buy from Strong Buy and lowered his price target to $32 from $50 after the company's Q1 earnings miss and soft guidance. Gill believes that investors underestimated the company's smartphone exposure and the impact of reduced demand from Apple (AAPL), adding that TowerJazz had previously mitigated these issues through pre-payments, but this time the magnitude of the order reduction was too great. Longer term, the analyst believes that secular demand for high performance analog products remains intact, anticipating renewed capacity expansion in the second half of this year of the first half of 2019.