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.

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Shares of Texas Instruments closed at $46.46 yesterday.