Ascendiant Capital Raises Texas Instruments Price Target

Ascendiant Capital on Tuesday reiterated Texas Instruments Incorporated TXN as a Buy and raised their price target to $64 from $56.

Analysts Cody Acree and David Williams wrote, “The firm maintained gross margins at 58%, down just 40 bps sequentially from last quarter's record of 58.4%, on a 6.6% sequentially reduction in sales. With an approximate 75% incremental margin and a consistently richer mix in analog and embedded, we expect the firm's gross margins to move higher with revenue growth in the June quarter.”

The company's fourth-quarter sales were 3.27 billion, which matched analysts' estimates. EPS was $0.76, which adjusting for two one-time items also matched analyst estimates of $0.69. Texas Instruments increased distribution re-sales by 14 percent and orders by 11 percent from last year.

Shares of Texas Instruments closed Monday at $55.05.