Nomura Securities maintains a 'Reduce' on Texas Instruments (TXN); Lowering Estimates

Nomura Securities maintains a 'Reduce' on Texas Instruments (NYSE: TXN), PT $28.

Nomura analyst, Romit Shah, said, "TI lowered 2Q guidance last night owing to weakness at Nokia. Revenue was lowered to a mid-point of $3.43bn from $3.55bn, and EPS is now expected to be $0.52-0.60 for the quarter, down from $0.51-$0.55 previously. We view this as a positive as it reduces an overhang on the stock; however, we are concerned that expectations for a better-than-seasonal second half are not realistic, given weakness at TI’s largest distributors and in industrial (ISM declined over 10% m/m in May). We are lowering our 2Q revenue/EPS estimates to $3.43bn/$0.53, from $3.55bn/$0.56. For 2011, we are lowering our estimates to $14.0bn/$2.28, from $14.2bn/$2.33. Our price target remains at $28, based on 12x our revised 2011 EPS estimate of $2.28."

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 $32.67 yesterday.

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