Analysts Remain Divided Over Texas Instruments' Prospects

Raymond James analyst Christopher Caso raised the price target on Texas Instruments Inc TXN to $230 from $220, implying an 18.41% upside, and maintained an Outperform rating.
Caso termed the Q2 results puzzling and the guidance meaningless.
Texas has guided revenue flat to down Q/Q for the last three quarters yet has significantly beat guidance each time.
He feels management likely suffers from a lack of confidence at the macro level, despite the tight supply conditions at both the company and the semi-industry at large.
Summit Insights analyst Kinngai Chan downgraded Texas to Hold from Buy without a price target.
Chan believes the company's Q3 outlook reflects some demand uncertainty in the PC and the smartphone markets.
Additionally, industry checks suggest that many industrial customers have been overstocking due to supply crisis concerns.
Chan estimates some channel inventory digestion in Q4 as pandemic demand tailwinds normalize.
Jefferies analyst Mark Lipacis opted to buy the company's shares following the company's Q2 earnings report.
The results were consistent with his recent channel checks that pointed to stretching lead times, robust demand, higher restocking requirements, and pricing power.
Lipacis views its Q3 outlook as conservative, noting that the company has beat its revenue and EPS outlook by 10% and 19% at the median, respectively, over the past six quarters.
Price action: TXN shares traded lower by 4.80% at $184.92 in the market session on the last check Thursday.

Market News and Data brought to you by Benzinga APIs

Get Our Top Trade Ideas Delivered Daily - 65% Off Now'

Get Our Top Trade Ideas Delivered Daily - 65% Off Now'

Comments

Analyst Calendar