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Texas Instruments (TXN) PT Raised to $45 at Goldman; Analyst Maintains Neutral Stance

July 22, 2014 8:50 AM EDT
Get Alerts TXN Hot Sheet
Price: $169.21 -1.92%

Rating Summary:
    18 Buy, 23 Hold, 6 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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Goldman Sachs maintained a Neutral rating on Texas Instruments (NASDAQ: TXN) and raised its price target to $45.00 (from $42.00). The change follow strong Q2 results and in-line Q3 guidance.

Analyst James Covello said, "We are Neutral on TXN and maintain a more conservative view on semi stocks into 2H. TI reported upside to 2Q14 and guided 3Q revenue in line with the Street from a higher base, consistent with our preview. We believe TI is executing well in its core analog and embedded businesses, with the company reporting upside to gross margin as a function of higher utilization and positive mix shift. However, we believe a report of this nature was already priced into the stock."

"We expect other semi companies to deliver similar reports over the next two weeks (upside in 2Q; in-line guide for 3Q) but we do not believe this will be enough for the stocks to trade higher, especially given 1) increasing seasonal and cyclical risk to fundamentals; 2) expanded valuations, with TXN trading at 18X normalized EPS and the group trading at 17X normalized EPS. We continue to prefer TXN to INTC in large cap semis. We raise our 2014/2015/2016 EPS estimates to $2.57/$2.85/$2.90 from $2.45/$2.70/$2.80 on higher margins/lower opex," he added.

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 $49.17 yesterday.



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