Sterne Agee Reiterates Neutral on Texas Instruments
Sterne Agee maintains its Neutral rating on Texas Instruments (NASDAQ: TXN) as the company reports good results for the fourth quarter but guides below consensus.
Sterne Agee says, "While TXN has executed well, we believe it has multiple challenges. TXN reported C4Q11 (Dec) revenues/EPS of $3.42B/$0.25, above consensus of $3.26B/$0.26. But guide for the Mar Q top line down 8% q/q was significantly below consensus. While management indicated fundamentals are close to a bottom, it also noted limited visibility. Also, we believe given a Substantial Fab Manufacturing base – 11 Fabs now with the acquisitions, running at low 50% utilization currently – leverage in the model could be tougher given weaker Macro and Analog in 2012."
TXN closed at $33.19 a share on Monday.
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