Deutsche Bank Cuts Price Target & Estimates on TI (TXN) Following Mid-Quarter Update

Deutsche Bank is maintaining its Hold rating on shares of Texas Instruments (NYSE: TXN) while cutting its price target from $35 to $30 on lower guidance.

Management reduced its third quarter revenue guidance from a gain of 2.5 percent quarter over quarter to a loss of 4.5 percent. The firm notes that the lower guidance reflects a weakness in demand.

The firm believes that the overall demand in the sector is weak and that it's not just TXN specific.

The company's new revenue and EPS guidance stands at $3.23-$3.37 billion and $0.56-$0.60, tweaked from $3.4-$3.7 billion and $0.55-$0.60. Overall, management believes that bookings will fall in the third quarter and inventory will rise.

As a result, the firm cut its 2011 revenue and EPS estimates to $13.3 billion and $2.22 from prior $13.7 billion and $2.33. Its 2012 estimates fell to $14.2 billion and $2.50 from $14.8 billion and $2.65.

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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