Gleacher & Co. Maintains a 'Buy' on Texas Instruments (TXN); Disaster Recovery Creating a Buying Opportunity
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Price: $279.58 +2.25%
Rating Summary:
24 Buy, 22 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
24 Buy, 22 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Gleacher & Co. maintains a 'Buy' on Texas Instruments (NYSE: TXN), PT $40.
Gleacher analyst says, "TXN provided an update yesterday relating to the output (supply side) impact of the Japan earthquake. We were able to speak with management and determined that while there are few "real details" we do have enough information to start our sensitivity analysis. The results are likely to surprise many...We walk through the puts and takes of supply and demand changes as well as the operational impact of a broad-based supply disruption...We can no longer expect a strong finish to 1Q11. We now believe 1Q11 will be at the low end of the range or slightly below. We believe our EPS estimate may move down by $0.04 to $0.05 for 1Q11."
"Earnings leverage could increase in 2012: Why? It is somewhat surprising on first glance, but we can remove $500mil in revenue from 2011 and only increase 2012 revenue by $100mil. While we leave operating expenses unchanged, we do increase the 2012 gross margin slightly to account for higher utilization rates and material step-up in factory loadings given the need to replenish depleted inventory...FY2011 could see lower EPS of $0.14 to $0.15 while our CY2012 could increase by $0.06."
For more ratings news on Texas Instruments click here and for the rating history of Texas Instruments click here.
Shares of Texas Instruments closed at $34.56 yesterday.
Gleacher analyst says, "TXN provided an update yesterday relating to the output (supply side) impact of the Japan earthquake. We were able to speak with management and determined that while there are few "real details" we do have enough information to start our sensitivity analysis. The results are likely to surprise many...We walk through the puts and takes of supply and demand changes as well as the operational impact of a broad-based supply disruption...We can no longer expect a strong finish to 1Q11. We now believe 1Q11 will be at the low end of the range or slightly below. We believe our EPS estimate may move down by $0.04 to $0.05 for 1Q11."
"Earnings leverage could increase in 2012: Why? It is somewhat surprising on first glance, but we can remove $500mil in revenue from 2011 and only increase 2012 revenue by $100mil. While we leave operating expenses unchanged, we do increase the 2012 gross margin slightly to account for higher utilization rates and material step-up in factory loadings given the need to replenish depleted inventory...FY2011 could see lower EPS of $0.14 to $0.15 while our CY2012 could increase by $0.06."
For more ratings news on Texas Instruments click here and for the rating history of Texas Instruments click here.
Shares of Texas Instruments closed at $34.56 yesterday.
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