Stifel Nicolaus Raises PT to $38 on Texas Instruments, Maintains Buy

Stifel Nicolaus reiterates its Buy rating on Texas Instruments (NASDAQ: TXN) and raises its price target to $38 from $36 on company's earnings report above estimates, driven by stronger December orders.

Stifel Nicolaus says, "This was a challenging quarter for TI and the overall semiconductor industry given the weak distribution (inventory adjustments), lower demand and low visibility, but we were, however, encouraged by order patterns that picked up in the month of December and have so far continued in January, according to management. While guidance suggests revenue declines of 7.9% at the midpoint, we note that baseband is expected to be down $200mn q/q."

TXN closed at $33.19 a share on Monday.