Nomura Securities Maintains a 'Reduce' on Texas Instruments (TXN); Mid-quarter Update Worse Than Expected

Nomura Securities maintains a 'Reduce' on Texas Instruments (NYSE: TXN) price target of $22.00.

Nomura analyst, Romit Shah, said, "TI’s mid-quarter update was worse than we expected. The company lowered revenue guidance outside of the previous range (down 2 to up 7%). In addition, TI indicated that both internal and channel inventories will increase, suggesting that Q4 will be weak as well. Furthermore, baseband becomes a bigger overhang with Nokia (NYSE: NOK) up. We believe TI’s multiple is stretched at 13x ex cash relative to our coverage at 10x and specifically Maxim (Nasdaq: MXIM), which trades at a 20% discount and growing much faster."

For more ratings news on Texas Instruments click here and for the rating history of Texas Instruments click here.

Shares of Texas Instruments closed at $25.80 yesterday.

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