Sterne Agee Sees Potential In TXN's New Product Lines

Sterne Agee has published a research report on Texas Instruments TXN as the company begins to enter into new product platforms hoping for a new leg of growth in 2011. In the report, Sterne Agee writes "We believe TXN's wins into new gaming platforms such as the Microsoft MSFT($27.23, Not Rated) Kinect should be a tailwind near term. Launched in November, with an estimate of 2.5M units for C4Q, we believe Kinect hit 2.5M units in November. We believe Kinect Units could hit 4-5M in C4Q on strong sales. According to our Interactive Entertainment Analyst, Arvind Bhatia, Kinect could be 10-11M+ units easily in 2012. We believe TXN supplies the 8-bit A/D converter for power management and Audio controller for the Kinect. TXN also supplies to e-Readers such as the Barnes & Noble BKS($15, Not Rated) Nook." Sterne Agee maintains its Buy rating and $40 price target on Texas Instruments, which closed yesterday at $33.75.