According to The Fly, oppenheimer analyst Rick Schafer reiterated a Buy rating on Texas Insts. (NASDAQ: TXN) yesterday and set a price target of $80. The company’s shares closed yesterday at $66.22, equals to its 52-week high of $66.22.
Schafer commented, “We are raising estimates and target after TXN posted beat-and-raise results Monday. 2Q sales/EPS of $3.27B/$0.76 bested the Street’s $3.20B/$0.72, and 3Q guidance of $3.48B/$0.86 also topped consensus $3.38B/$0.81. After jumping 210bp Q/Q in 1Q, GM increased another 60bp Q/Q (up 300bp Y/Y), easily ahead of the Street’s 60.6%. We see additional upside to the model going forward as mix increasingly favors 300mm and Auto/Industrial. We continue to see TXN as a high-quality, diversified, defensive bellwether, with a best-in-class capital return profile via a 30% FCF margin and 100%+ payout. We expect TXN’s results and guidance to calm investor fears surrounding any Brexit-related slowdown in the auto/industrial markets (45% of revenue).”
According to TipRanks.com, Schafer is a top 100 analyst with an average return of 13.8% and a 66.9% success rate. Schafer covers the Technology sector, focusing on stocks such as Adesto Technologies Corp, Peregrine Semiconductor, and Advanced Micro Devices.
Texas Insts. has an analyst consensus of Moderate Buy, with a price target consensus of $64.63
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The company has a one year high of $66.22 and a one year low of $42.61. Currently, Texas Insts. has an average volume of 5.28M.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is negative on the stock. Most recently, in May 2016, Christine Todd Whitman, a a Director at TXN sold 7,000 shares for a total of $404,180.
Texas Instruments Incorporated is a global analog and digital semiconductor IC design and manufacturing company. In addition, to analog technologies, digital signal processing and microcontroller semiconductors, it designs and manufactures semiconductor solutions for analog and digital embedded and application processing. The company operates through four business segments: Analog, Embedded Processing and Other. The Analog segment semiconductors change real-world signals such as sound, temperature, pressure and images by conditioning them, amplifying them and often converting them to a stream of digital data that can be processed by other semiconductors, such as digital signal processors. Its product portfolio includes high-volume analog and logic, high-performance analog and power management. The High-volume analog and logic products include specific applications and custom products. The High-performance analog products include standard analog semiconductors, such as amplifiers, data converters and interface semiconductors. The Power management products include both standard and custom semiconductors that help customers manage power in any type of electronic system. It designs and manufactures power management semiconductors for both portable devices, such as handheld consumer electronics, laptop computers and cordless power tools and line-powered systems, such as computers, digital TVs, wireless base stations and high-voltage industrial equipment. The Embedded Processing segment products include digital signal processing and microcontrollers. It manufactures and sells standard and catalog Embedded Processing products used in many different applications and custom Embedded Processing products used in specific applications, such as communications infrastructure equipment and automotive. The Other segment includes smaller semiconductor product lines and sales handheld graphing and scientific calculators. The company was founded in 1930 by Cecil H. Green, Patrick Eugene Haggerty, John Erik Jonsson and Eugene McDermott and is headquartered in Dallas, TX.
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