UPDATE: Morgan Stanley Reiterates on Texas Instruments on Strong Position

In a report published Friday, Morgan Stanley analyst Joseph Moore reiterated an Equal-Weight rating on Texas Instruments TXN, but removed the $104.00 price target. In the report, Morgan Stanley noted, “Clearly TI is in a strong position with domestic cash flow, and it's a positive that the company has followed through on its cash flow initiatives. We also agree that on free cash flow, valuation is favorable relative to more capital intensive peers (notably INTC and TSM). Still, we expect growth headwinds relative to analog comparables due to business mix, with relatively weak growth from personal electronics (37% of revenues), enterprise systems (6% of revenues), calculators (4% of revenues), and a slower rate of investment (& less management enthusiasm) for communications infrastructure (16% of revenues). We do expect growth in autos (13%) and industrial (24%) but we prefer names with more exposure to those areas at a similar overall valuation, notably LLTC.” Texas Instruments closed on Thursday at $44.99.