UPDATE: Sterne Agee Downgrades Texas Instruments to Underperform on Valuation, Wireless Exit

Sterne Agee reduced its rating on Texas Instruments

from Neutral to Underperform with a $27 price target. Sterne Agee said, "We believe a 2013 exit from the wireless segment (~$800M in C12E) could be drag on top line/margins, even as Industrial-Communication markets improve. TXN also trades at a premium 23.5x versus the Analog group at 18.1x. With TXN not rationalizing any Fab capacity we believe there will be further downside to 1H13 consensus estimates and TXN top-line/margin improvement will lag its peers." Texas Instruments closed at $30.80 on Thursday.