On Thursday, Stifel analysts maintained a Hold rating for Texas Instruments (NASDAQ:TXN) stock, with a price target set at $160.00. According to InvestingPro data, the stock is currently trading near its Fair Value, with a P/E ratio of 30.7x, reflecting relatively high valuations in the semiconductor sector. The firm’s commentary highlighted Texas Instruments’ first-quarter revenue surpassing expectations, reporting sales of $4.07 billion, which is a 4.3% increase compared to Stifel’s estimate of $3.90 billion. Texas Instruments also provided a second-quarter revenue forecast with a midpoint of $4.35 billion, indicating a 6.9% sequential growth and surpassing Stifel’s projection of $4.10 billion by 6.2%.
The company’s earnings per share (EPS) guidance for the second quarter, with a midpoint of $1.34, was notably higher than Stifel’s prior estimate of $1.18. A breakdown of segment results showed that Analog revenue rose by 1.1% quarter-over-quarter to $3.21 billion. Embedded Processing revenue saw a more significant increase of 5.5% quarter-over-quarter, reaching $647 million. However, the Other segment experienced a decline of 3.6% quarter-over-quarter, coming in at $212 million. The company maintains strong fundamentals, with InvestingPro data showing a healthy gross profit margin of 58.14% and total revenue of $15.64 billion over the last twelve months. Texas Instruments also demonstrates solid financial stability with a current ratio of 4.12, indicating strong liquidity.
Stifel’s analysis pointed out that Texas Instruments’ performance was a positive sign, with the company’s cyclical recovery dynamics appearing to be in focus. The analysts noted the potential for tariffs to be mitigated in the second half of the year, although they also acknowledged the uncertainty surrounding the tariff landscape.
In conclusion, Stifel’s stance on Texas Instruments remains cautious, with a Hold rating sustained and a 12-month price target of $160. This valuation is based on a 26.1 times the calendar year 2026 estimated P/E ratio. The firm’s position reflects a balance between management’s positive sentiment and the need for additional clarity regarding the pace and extent of potential growth in the upcoming quarters, with the backdrop of ongoing tariff uncertainties. Notably, InvestingPro data reveals that Texas Instruments has maintained dividend payments for 55 consecutive years and currently offers a 3.58% dividend yield. For deeper insights into TXN’s valuation metrics, growth potential, and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, Texas Instruments reported financial results that exceeded expectations, with revenue reaching $8.4 billion and earnings per share (EPS) at $2.64, surpassing consensus estimates. The company noted a significant reduction in customer inventory levels and a broad recovery across various markets, including the Industrial sector. Despite this strong performance, analysts from firms like Cantor Fitzgerald and JPMorgan have adjusted their price targets for Texas Instruments, citing macroeconomic factors and tariff concerns. Cantor Fitzgerald reduced its price target to $170, maintaining a Neutral rating, while JPMorgan lowered its target to $195 but kept an Overweight rating.
Truist Securities also adjusted its price target for Texas Instruments, reducing it to $171, while maintaining a Hold rating. The analyst from Truist highlighted the company’s minimal impact from tariffs and its benefit from a cyclical recovery in the semiconductor industry. KeyBanc Capital Markets followed suit, cutting the price target to $215 but retaining an Overweight rating, acknowledging the company’s ability to navigate tariff challenges with its global manufacturing capabilities.
TD Cowen maintained a Hold rating with a $160 price target, noting the company’s strong performance and guidance improvement despite uncertainties in the second half of the year. Across the board, analysts recognize Texas Instruments’ robust financial results but express caution due to potential tariff impacts and broader economic conditions. Investors will continue to monitor the company’s strategic positioning and global manufacturing flexibility as key factors in mitigating geopolitical risks.
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