UPDATE: Deutsche Bank Raises PT to $27 on Texas Instruments on Cost Reduction Action

Deutsche Bank reiterated its Hold rating on Texas Instruments

but raised its price target from $26 to $27. Deutsche Bank commented, "TXN announced cost reduction actions that it expects will yield $450m in annualized savings by the end of 2013. While some kind of restructuring in the OMAP business was expected, the magnitude of the planned cuts (1,700 jobs or ~5% of total) is larger than expected and is accretive to our CY13 estimates. However, we believe some investors will be disappointed that a buyer for the smartphone/tablet business did not emerge as hoped. Overall, we raise our P/T to $27 (from $26) on higher CY13 ests but retain a Hold rating as the stock appears fairly valued at current levels." Texas Instruments closed at $27.25 on Wednesday.