UBS Raises price Target on Texas Instruments (TXN) to $76; Reiterates Buy

UBS reiterated a Buy rating on Texas Instruments (NASDAQ: TXN), and raised the price target to $76.00 (from $68.00), following the company's 2Q earnings report. TI guided 3Q16 revenue and EPS to $3.48B and $0.86 compared to the consensus of $3.39B and $0.81.

A UBS analyst commented, "TI beat its 2Q16 targets and guided its 3Q16 higher than we expected. We keep a Buy rating as we estimate that this solid execution will continue. TI's reported 2Q16 sales upside was driven by the auto, industrial, and communications segments, which more than offset a substantial decline in personal electronics due to mobile (we estimate its sales to Apple were down -10% yoy in 2Q16) and to a lesser degree PCs. We believe this top line growth is leading to steady share gains across a range of products. TI continues to maintain a strong design win position in the auto market with strength in infotainment and power management, with higher content a key growth driver. We believe TI's broad-based industrial segment is also performing well given that short lead times and high on-time delivery metrics help support an expanding catalog business and capture intra-quarter orders / turns business."

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 $66.22 yesterday.

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