Oppenheimer Has Outperform On Texas Instruments

Oppenheimer & Co. has an Outperform rating and a $41 price target on shares of Texas Instruments TXN. In a note to clients, Oppenheimer writes, "TXN holds its mid-qtr update Wed. (6/8/11) after the close. Mgmt appears to be executing well on Japan clean-up efforts, which could provide some upside vs. original 2Q outlook. In the key PC vertical, our checks reveal OEMs/ODMs continue to build component inventory, which should provide an offset to incrementally weaker baseband (NOK). As such, we expect mgmt to tighten 2Q outlook around the high-end of prior guidance and are raising our 2Q sales/EPS from $3.5B/$0.56 to $3.6B/$0.59 vs. consensus $3.55B/$0.57. We are trimming 3Q ests as any excess PC inventory exiting 2Q could mute typically strong 3Q seasonality. We continue to believe in TXN's long-term analog-driven, share-gain story, and our CY12E EPS increases from $2.93 to $3.00." Shares of TXN gained 29 cents yesterday to close at $34.24, a gain of 0.85%.