Texas Instruments (TXN) Still Clawing Its Way out of A Hole

September 20, 2012 9:00 AM EDT
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Price: $74.75 +1.18%

Rating Summary:
    25 Buy, 19 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Massive supply chain disruption following the Japan earthquake roiled long-standing Texas Instrument (TXN) factories based in that island nation. At the same time the Eurozone financial crisis and China slowdown resulted in Texas Instrument’s stock underperforming relative the S&P 500. That said, the strategic acquisitions National Semiconductor (NYSE: NSM) should enable Texas Instruments to climb out of the big hole created by last year’s Japan earthquake, say analysts at Drexel Hamilton.

“After the big NSM acquisition, a resulting sharp drop in gross and operating margin created a big hole out of which the shares are just beginning to climb,” said analyst Richard Whittington.

“Device power management enhanced by last year’s National Semiconductor acquisition combines with legacy participation in applications processors to prospectively benefit TXN in fast-growing smartphones and mobile devices,” thinks Whittington.

Optimizing battery life in smartphone, tablet, e-reader and other devices in a growing litany of mobile electronics platforms remains a key Texas Instruments calling card, and step up orders could begin as confidence slowly returns.

Today Drexel Hamilton initiated coverage on Texas Instruments (NASDAQ: TXN) with a Hold and a Price target of $32.00.

For an analyst ratings summary and ratings history on Texas Instruments click here. For more ratings news on Texas Instruments click here.

Shares of Texas Instruments closed at $28.69 yesterday.

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