UBS Reiterates a 'Buy' on Texas Instruments (TXN); Lowers 4Q Outlook; Closer to a Bottom

UBS reiterates a 'Buy' on Texas Instruments (NYSE: TXN) price target lowered from $35 to $33.

UBS analyst says, "Closer to the bottom – Echoes of 4Q08 / 1Q09? TXN lowered its outlook for 4Q driven by broad based softness across most end markets, excluding wireless where TI is gaining with its OMAP 4 application processor. Despite this lowered outlook, TXN believes it is still in a bottoming process as channel inventories are very lean, & semis continue to under-ship end demand. We believe that current environment echoes 4Q08/1Q09 and 1Q12 will be the bottom of current cycle (see our report of Nov 11); and we should see revenue growth in 2Q12 driven by inventory restocking and potential macro stabilization."

"We lower our 4Q Rev/EPS (pf) to $3,264m/39c (ex 16c one time items) from $3,419m/46c (ex 15c one time items). For 2012, we lower our estimates to $13.7B/$1.89 from $14.5B/$2.20 and for 2013 to $14.3B/2.32 from $14.9B/$2.57."

For an analyst ratings summary and ratings history on Texas Instruments click here. For more ratings news on Texas Instruments click here.

Shares of Texas Instruments closed at $29.92 yesterday.

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