Wells Fargo Cuts Valuation Range on Texas Instruments (TXN) Following Lower Guidance

Wells Fargo is maintaining its Market Perform rating on shares of Texas Instruments (NYSE: TXN) while lowering its valuation range from $30-$36 to $24-$30.

The company lowered its third quarter revenue guidance from $3.4-$3.7 billion to $3.23-$3.7 billion. The firm notes that the guidance cut is largely due to demand weakness across many products.

TXN still forecasts $100 million worth of cost synergies from the integration of National Semiconductor. The company's overall wireless business is estimated to be flat sequentially.

An analyst at Wells Fargo comments, "TI is the world market share leader in analog integrated circuits and digital signal processors, two segments which we consider to be complementary. However, TI is also involved in a number of relatively low growth businesses, including calculators."

As a result of the new guidance, the firm is lowering its 2011 and 2012 EPS estimates from $2.36 and $2.81 to $2.31 and $2.70.

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 $25.80 yesterday.

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