On Thursday, TD Cowen maintained a Hold rating on Texas Instruments (NASDAQ:TXN) stock with a steady price target of $160.00, falling within the broader analyst range of $125 to $250. The firm’s analyst, Joshua Buchalter, acknowledged the company’s strong performance and guidance improvement despite concerns about the second half of the year’s visibility and ongoing tariff issues. According to InvestingPro data, the stock currently trades at an EV/EBITDA multiple of 22.5x.
Texas Instruments recently reported financial results that exceeded expectations and provided an optimistic outlook, with the company noting a significant reduction in customer inventory levels. All business segments showed quarter-over-quarter growth, except for the seasonally weaker Personal Electronics (PE) sector. The company maintains strong financial health with a current ratio of 4.12x and has impressively raised its dividend for 21 consecutive years, demonstrating consistent shareholder returns.
Buchalter mentioned the challenge of having confidence in the visibility for the second half of 2025, citing the unpredictable nature of customer order pull-ins as a potential issue that could affect investor sentiment towards Texas Instruments and its industry peers. In light of these uncertainties, the analyst has adjusted the company’s earnings estimates for the second half of 2025 and the full year of 2026. For deeper insights into TXN’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers 12 additional exclusive tips about the company.
The analyst’s commentary highlighted the improving fundamentals within the company, but also pointed out the concerns that prevent a more optimistic stance. The valuation and uncertain market conditions were cited as reasons for maintaining the Hold rating and the $160 price target for Texas Instruments stock. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, with a gross profit margin of 58.14% supporting its premium market position.
In other recent news, Texas Instruments has reported strong financial results for the first quarter of 2025, with earnings per share (EPS) of $1.28, surpassing the forecast of $1.06, and revenue reaching $4.1 billion, exceeding expectations of $3.91 billion. The company has provided positive guidance for the second quarter, projecting revenue between $4.17 billion and $4.53 billion. Despite the robust performance, several analysts have adjusted their price targets for Texas Instruments. Cantor Fitzgerald reduced its target to $170, while maintaining a Neutral rating, due to the uncertain macroeconomic climate. Truist Securities also lowered its target to $171, citing minimal tariff impact but maintaining a Hold rating. KeyBanc Capital Markets set a new target of $215 with an Overweight rating, acknowledging the company’s strong quarterly performance and recovery in the industrial sector. JPMorgan decreased its target to $195, maintaining an Overweight rating but expressing caution about potential tariff impacts in the latter half of the year. These adjustments reflect broader economic factors and industry trends, as Texas Instruments continues to navigate geopolitical uncertainties and tariff-related challenges.
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