Barclays Reiterates an 'Equalweight' on Texas Instruments (TXN); Trough Likely Moves to 1Q12; Underutilization Weighs on Earnings

Barclays reiterates an 'Equalweight' on Texas Instruments (NYSE: TXN) price target lowered $2 to $31.

Barclays analyst says, "TI Cuts Guidance But Reaffirms Bottoming: While we like the potential leverage story longer-term, we think the only gradual recovery we expect will limit TXN's ability to meaningfully improve its margins, lead by the company's 300mm strategy. We have adjusted our numbers to reflect the lower earnings guide and our expectation for a trough in 1Q12. We continue to point to NXPI and AVGO (covered by Blayne Curtis) as our two favorite names in analog."

"Our 4Q sales/EPS estimates move to $3.25B/$0.26 (old $3.4B/$0.47, cons $3.4B/$0.48) while CY11/CY12 move to $13.6B/$2.04 (old $13.7B/$2.25, cons $13.7B/$2.19) and $13.8B/$1.85 (old $14.1B/$2.25, cons $14.4B/$2.30)."

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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