Texas Instruments (TXN) PT Lowered to $215 at UBS

UBS analyst Timothy Arcuri lowered the price target on Texas Instruments (NASDAQ: TXN) to $215.00 (from $225.00) while maintaining a Buy rating.

The analyst commented, "CQ1 results and positive underlying commentary for CQ2 support our thesis prior to April 2 "Liberation Day" that TXN is a share gainer in a cyclical recovery just starting to take shape. The question now though is how much a US/ China trade war and potential demand destruction change the shape of the year, making CQ2 better (due to pull-ins), muting any 2H recovery, and accelerating content localization efforts already underway in China. TXN's commentary is not signaling a massive acceleration in order activity or shipments since April 2, though it also acknowledges that it is logical to think some of this is happening and to some degree a CQ2 tailwind. This is a debate impacting a host of end markets (mostly consumer) but TXN has a key advantage because industrial customers in particular have been drawing down inventory for the past 2 years and a recovery is already underway so even if autos see more severe demand destruction and personal electronics is benefiting from pull-ins, this will probably be offset by some ongoing improvement in industrial as those customers cautiously rebuild inventory."

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