UPDATE: Jefferies & Company Reiterates Buy Rating, Raises PT on Texas Instruments

In a report published Wednesday, Jefferies & Company reiterated its Buy rating on Texas Instruments

, and raised its price target from $35.00 to $40.00. Jefferies noted, “The Bear argument that TXN is expensive on a P/E basis ignores the high quality of earnings that comes through TI's cash flow statement. In 2012, free cash flow of $2.9b was 54% higher than net income, and we expect FCF to exceed net income again in 2013 due in part to CapEx underfunding depreciation by $400m and $200m in lower pension funding. Reiterate Buy.” Texas Instruments closed on Tuesday at $33.46.