© Reuters. Texas Instruments earnings sparks positive reaction from analysts despite guidance concerns
By Sam Boughedda
Analysts at Deutsche Bank and Jefferies were impressed with Texas Instruments’ (NASDAQ:) , although its guidance was a slight cause for concern for one.
Deutsche Bank analysts reiterated a Hold rating and raised the firm’s price target on the stock to $$165 from $158.
The analysts told investors in a note that TXN delivered a “fine 4Q22 print on revenues and EPS but guided 1Q revs to be sub-seasonal, in line with the buyside bogey but below DB/Street (guidance -7% q/q at the midpoint vs. DB/Street -2%/-3%).” The analysts concluded that TXN shares remain fully valued.
On the more bullish side, Jefferies analysts reiterated a Buy rating and slightly upped the firm’s price target on TXN to $205 from $204.
The analysts said they are buyers of TXN post-results, as they model revenues to bottom in the second quarter and see a V-shaped recovery.
“We model TXN revs to 1) trough in 2Q23 at -18% YY, and then 2) bottom in a “V” recovery starting in 2H23, similar to 2009 and 2021 cycles. We think a “V” recovery would lead to tight capacity again by 1H24 if not 2H23, and given TXN’s capacity additions, we think it takes share, particularly amongst US/Euro customers looking to reshore,” wrote the analysts.
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