BofA Securities Downgrades Texas Instruments (TXN) to Underperform, 'Macro headwinds plus rich valuation'

BofA Securities analyst Vivek Arya downgraded Texas Instruments (NASDAQ: TXN) from Neutral to Underperform with a price target of $190.00 (from $208.00).

The analyst comments "This downgrade report is in conjunction with our reassessment of our coverage cluster based on expected upside to our 12-month price objectives. While we continue to appreciate the high quality of TXN’s assets and its execution consistency, we believe the turmoil caused by global tariffs could keep the lid on any near/medium-term demand improvement in the industrial economy. Unlike some peers (IFX), TXN has limited exposure to the ongoing AI capex cycle. Meanwhile TXN’s 25x/31x CY26E PE on consensus/our estimates is richer than closest peer ADI despite TXN’s lower FCF generation. Overall, we lower TXN’s FY26/27 estimates by -3% each to $6.05/$6.91 which is 8%/13% below consensus. Lower PO to $190 from $208 based on 31x CY26 PE vs. 33x prior, still within TXN’s historical 16x-36x range."

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 $171.70 yesterday.

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