TXN’s Shares Remain Attractive After Mid-Quarter Update
Analysts at Wedbush Morgan reiterate their "outperform" rating on Texas Instruments Inc (NYSE: TXN). The target price for TXN is set to $33.
“We believe shares remain attractive after TI’s positive mid-quarter update where revenue and EPS guidance was raised on broad-based strength (excluding seasonally weaker wireless). In particular, we see benefits in replacing declining baseband revenues with high margin analog share gains,” the analysts mention. TXN noted that demand remains strong across a majority if its end-markets, with strength in industrial, communication infrastructure, PCs, HDTVs and automotive. Importantly, the reduction in lead times is the result of an increase in test and assembly capacity implemented during the previous quarters and not due to a slackening of demand, according to Wedbush Morgan.
Texas Instruments narrowed and raised the midpoint of its 1Q revenue guidance to 2.2% Q/Q. The GAAP EPS guidance was increased from $0.44-$0.52 to $0.48-$0.52. “The new guidance is above our revenue/EPS estimates, in-line with the Street,” the analysts add.
