Analyst Harlan Sur of J.P. Morgan maintained a Buy rating on Texas Instruments (TXN – Research Report), with a price target of $180.00.
Harlan Sur has given Texas Instruments a Buy rating due to a combination of factors which include the company’s position as a market leader in high-value analog and embedded products, as well as its broad-based market exposure and shareholder-friendly capital allocation. Despite the recent weak demand and customer inventory adjustments leading to a lower near-term revenue forecast, Sur believes that the company’s revenue should stabilize, marking the bottom of the current cycle and setting the stage for a recovery in the second half of the year.
Additionally, Sur’s optimism is bolstered by Texas Instruments’ proactive expansion of its manufacturing capabilities ahead of demand, which positions the company for growth as market conditions improve. While acknowledging short-term headwinds, the report suggests gross margins will recover in the latter half of the year as a result of better revenue and fixed cost absorption, along with the unwinding of utilization charges. This anticipated improvement in financial performance, combined with the company’s attractive leverage and dividend yield, underpins the rationale for the Buy rating and the adjusted price target of $180.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Texas Instruments (TXN) Company Description:
Incorporated in 1930, Texas Instruments Incorporated, a global semiconductor company, designs, manufactures and sells analog and embedded processing chips. The company operates through two segments, including Analog, and Embedded Processing. The company is headquartered in Dallas, Texas.
Read More on TXN:
- Texas Instruments (NASDAQ:TXN): Q1 Outlook Weighs on Stock Price
- TI reports Q4 2023 and 2023 financial results and shareholder returns
- Options Volatility and Implied Earnings Moves Today, January 23, 2024
- Texas Instruments initiated with a Neutral at Cantor Fitzgerald
- Options Volatility and Implied Earnings Moves This Week, January 22 – January 26, 2024
