Texas Instruments (TXN) Not Expensive When Looking at Net Capital Return and FCF - Jefferies
Get Alerts TXN Hot Sheet
Rating Summary:
18 Buy, 23 Hold, 6 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Join SI Premium – FREE
Shares of Texas Instruments (NASDAQ: TXN) are up 5% amid better-than-expected Q1 results after the close. Jefferies analyst Mark Lipacis see shares headed higher still and raised his price target from $52 to $55, accordingly.
Lipacis commented, "Bears argue TXN is expensive on a fwd P/E basis (21x), but that ignores TXN's high net capital return and FCF. We forecast 2014 to be the 3rd yr where TXN's Net Capital Return and FCF exceed its Net Income. We've argued that best practices in capital return will sustain a premium P/E, our $55 price target assumes a P/E of 20.5x, but a P/FCF of 16x our 2015 forecast, in line with peers."
The firm raised Q2 EPS from $0.58 to $0.59 and FY 2014 EPS from $2.26 to $2.33. FY 2015 was trimmed from $2.86 to $2.68.
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 $46.46 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- TechnipFMC (FTI) PT Raised to $30 at BTIG
- Goldman Sachs Downgrades Parade Technologies Ltd. (4966:TT) to Sell
- Parade Technologies Ltd. (4966:TT) PT Lowered to NT$800 at JPMorgan
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Jefferies & CoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!