Oppenheimer Maintains an 'Outperform' on Texas Instruments (TXN); Adjusting Estimates for Macro Concerns

September 12, 2012 10:36 AM EDT Send to a Friend
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Price: $48.37 +0.94%

Rating Summary:
    15 Buy, 22 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 14 | New: 38
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Oppenheimer maintains an 'Outperform' on Texas Instruments (NASDAQ: TXN) price target of $35.00.

Analyst, Rick Schafer, said, "TXN narrowed its 3Q revenue outlook around the midpoint—in line with consensus $3.34B, while narrowing EPS toward the high end at $0.40 vs consensus $0.38. Upside in EPS is being driven by lower opex and insurance proceeds of $60M (offsetting weakness in core analog/embedded). Orders/backlog have started to soften and inventory is low as customers/distributors remain reluctant to build inventory given the uncertain
macro. While we expect a relatively muted reaction in shares Wednesday, we commend management's swift action to cut opex. TI is a highly diversified industry bellwether and we expect peers are seeing similar macro-driven order sluggishness. This points to a potentially lackluster 4Q and further downward estimate adjustments for many as October earnings season approaches."

FY12 EPS estimate lowered from $1.41 to $1.38 and FY13 lowered from $1.80 to $1.65.

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 $28.58 yesterday.




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