UPDATE: Nomura Downgrades Texas Instruments on Negative Outlook

In a report published Thursday, Nomura analyst Romit Shah downgraded the rating on

from Neutral to Reduce, but reiterated the $33.00 price target. In the report, Nomura noted, “While TI's execution has been solid, we believe the company's performance is well respected and understood. TI is trading at a 10-year high to Intel (85% premium versus an average of +3%) and Qualcomm (10% discount versus an average of -58%). Margin benefits from optimizing free cash flow that have been a big boost to the stock may have run their course. In addition, we believe that revenue growth despite a diminishing wireless drag may continue to be modest. Furthermore, we estimate that share repurchases at current levels are barely reducing share count. Our target price is unchanged at $33 and is based on a multiple of 15x 2014E EPS, excluding net cash.” Texas Instruments closed on Wednesday at $42.81.