Nomura Securities Maintains a 'Reduce' on Texas Instruments (TXN); Q3 Review

Nomura Securities maintains a 'Reduce' on Texas Instruments (NYSE: TXN) price target of $22.00.

Nomura analyst, Romit Shah, said, "Texas Instruments reported 3Q revenue of $3.47bn, flat QoQ, ahead of our estimate of $3.30bn and consensus of $3.33bn. Proforma EPS guidance of $0.47 is below our estimate of $0.50 and consensus of $0.54. Considering $80mn in cash charges related to the acquisition, adjusted EPS guidance is $0.44. Importantly, we estimate NSM is not accretive to EPS in Q4. We are lowering our estimates from $0.50 to $0.47 in Q4 and from $2.15 to $2.00 in CY12 to account for the NSM acquisition (Neutral to EPS) and a weaker macro environment (TI revs down 10%). The stock trades at roughly 17x CY12, which seems expensive, considering earnings may decline again in 2012 and a net debt balance of almost $3 per share."

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 $31.69 yesterday.

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