Citi maintains Buy on Texas Instruments with $235 target

Published 05/02/2025, 11:48
© Reuters.

Wednesday, Citi analysts maintained a Buy rating on Texas Instruments (NASDAQ:TXN) stock, with a price target of $235.00, well above the current trading price of $180.56. The firm’s analysts highlighted the company’s recent capital management call, where Texas Instruments confirmed its capital expenditure plans and free cash flow (FCF) per share targets. The analysts expressed confidence in the company’s future performance, particularly noting the potential for analog inventory replenishment in 2025. According to InvestingPro data, analyst targets for TXN range from $130 to $284, reflecting diverse market opinions about the company’s prospects.

Texas Instruments, according to Citi analysts, is poised to be the primary beneficiary of the analog inventory replenishment, citing a 25% decline in sales from the peak as an indicator of future demand. This aligns with the company’s current revenue of $15.64 billion and projected 9% revenue growth for FY2025, as reported by InvestingPro. They pointed to the company’s expansion of its 300mm manufacturing capacity and lower depreciation costs as key factors that will support its growth.

The analysts reiterated their positive stance on Texas Instruments, anticipating that the company could achieve a peak earnings per share (EPS) of over $10.00. They underscored Texas Instruments’ position as their top pick within the Analog sector, attributing this to what they see as the most attractive risk/reward balance.

Texas Instruments’ commitment to its capital expenditure strategy and FCF per share targets during the capital management call signals a steady approach to growth and financial health. The analysts’ reiteration of the Buy rating reflects their belief in the company’s ability to capitalize on market opportunities and deliver strong financial results.

Citi’s target price of $235.00 for Texas Instruments remains unchanged, as the analysts continue to view the stock favorably within the broader context of the analog semiconductor industry. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its Fair Value. The firm’s outlook suggests confidence in Texas Instruments’ strategic initiatives and market position as the industry anticipates a recovery and growth phase in the coming years.

In other recent news, Texas Instruments reported its December quarter earnings, with revenue guidance surpassing consensus expectations but a weaker earnings forecast. Benchmark reiterated a Buy rating on Texas Instruments, maintaining a $230 price target, citing high inventory levels as a strategic advantage for the company. Meanwhile, Stifel maintained a Hold rating with a steady price target of $200, noting a revenue increase of 4.1% primarily driven by the Personal Electronics sector.

In contrast, Truist Securities reduced their price target from $199 to $195, maintaining a Hold rating due to increased profitability challenges and a cautious stance on the semiconductor industry. Truist revised its earnings per share (EPS) estimate for the calendar year 2026 to $6.30, down from the previously projected $6.65.

Lastly, Cantor Fitzgerald maintained a Neutral rating on Texas Instruments with a steady price target of $200. They noted gross margins as a key area of focus with guidance indicating a potential decline to around 55% in the first quarter. Despite these developments, Cantor Fitzgerald anticipates that Texas Instruments will remain rangebound.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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