Texas Instruments (TXN) is an Opportunity Ahead of Big Capacity Coming Online - Rosenblatt

Rosenblatt analyst Hans Mosesmann reiterated a Buy rating and $230.00 price target on Texas Instruments (NASDAQ: TXN) on the belief that there is a trading opportunity ahead of "big capacity coming online" even as the company underperformed the group over the last 3-months (down ~4% vs. up +22% SOX)".

The analyst stated "We see TXN’s underperformance related to a combination of narratives (customers becoming more selective on critical components, reluctance to raise prices like competitors, and increased capital intensity going forward), which feed bear themes that the company is losing market share on the merits and/or related to the exit from doing business through the traditional distribution/channel. Management’s discipline to stay focused uniquely in messaging of FCF maximization (great model, analog/embedded focus, and efficiency) based on structural advantages (diversity/longevity, TI.com reach, broad portfolio, and manufacturing) is spot-on long-term, but may be frustrating to investors that want more near-term qualitative perspective. We see the capital management update early next month (Thursday, February 3), as an opportunity for an update that will likely be a strong positive catalyst for investors to rethink the TI story."

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 $186.03 yesterday.

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