UPDATE: ISI Group Reiterates Buy Rating on Texas Instrument, Bookings Take Center Stage

In a report published Tuesday, ISI Group reiterated its Buy rating on Texas Instrument

and $37.00 price target, as potential for strong cycle grows. ISI international reported that, “TI is scheduled to host its mid quarter update after the close on Thursday. We expect the company to narrow its revenue range to bracket the upper half of its prior outlook. Recall, TI had guided 1Q revenue in the range of $2.69b to $2.91b (-6% qoq to the midpoint). Of the forecasted decline, 4.5% points are expected to come from recently exited wireless segments, leaving the outlook for the core businesses about seasonal (-2% qoq) but largely behind outlooks from TI's peers. We expect the core business to perform more in line with that of its competitors, and anticipate slight growth into the March quarter (in analog and embedded) with the potential benefit of some inventory replenishment, given that distributor inventory has fallen below 6 weeks.” Texas Instrument shares closed at $30.14 on Monday.