Oppenheimer analyst Rick Schafer maintained a Buy rating on Texas Instruments (NASDAQ: TXN) today and set a price target of $130. The company’s shares closed yesterday at $99.43.
Schafer noted:
“Semiconductor bellwether TXN reports after the close Tuesday (10/23). We see 3Q results in line with Street’s sales/EPS of $4.3B/$1.53E. We expect 4Q outlook also in line at $4B/$1.38. Investor sentiment has become increasingly negative as macro uncertainty has grown. An aging semiconductor cycle has contributed to fears of a looming correction. As a diversified large-cap with seasoned/highly regarded mgmt and auto/industrial exposure (~55% of sales) investors will view TXN’s report as a litmus test of demand trends. In 2Q earnings call, mgmt pegged tariff exposure at ~1% of revenue…a number that can be further reduced. Mgmt remains committed to returning 100% of FCF. We view TXN as the top diversified steward of capital in the group with an established record of consistent execution. We remain long-term buyers with $130 target.”
According to TipRanks.com, Schafer is a 5-star analyst with an average return of 14.2% and a 64.1% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Akoustis Technologies, Skyworks Solutions, and Maxim Integrated.
Texas Instruments has an analyst consensus of Moderate Buy, with a price target consensus of $126.58, a 27.3% upside from current levels. In a report issued on October 10, Susquehanna also maintained a Buy rating on the stock with a $120 price target.
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Based on Texas Instruments’ latest earnings release for the quarter ending June 30, the company reported a quarterly revenue of $4.02 billion and net profit of $1.39 billion. In comparison, last year the company earned revenue of $4.12 billion and had a net profit of $1.27 billion.
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Texas Instruments Inc. engages in the design and manufacture semiconductor solutions for analog and digital embedded and application processing. It operates through the following business segments: Analog & Embedded Processing.
