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Investing.com - Morgan Stanley has lowered its price target on Texas Instruments (NASDAQ:TXN) to $175.00 from $192.00 while maintaining an Underweight rating on the stock. The stock, currently trading at $180.84 with a market capitalization of $164.41 billion, is trading at a relatively high P/E ratio of 33x. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
The firm expressed surprise that Texas Instruments has not shown upside versus seasonal patterns in the second half of 2025, though it still expects improved revenues in the future.
Morgan Stanley had previously anticipated that Texas Instruments would likely fall below the low end of its $20-26 billion revenue range for 2026, but analysts were nonetheless surprised by merely seasonal second-half performance.
The firm noted that both macroeconomic cycles and microchip inventory cycles should provide modest tailwinds to Texas Instruments’ business going forward.
Morgan Stanley continues to receive "modestly upbeat commentary" from its industry checks regarding order rates in industrial markets, which it believes should eventually materialize in Texas Instruments’ performance.
In other recent news, Texas Instruments reported September quarter revenue of $4.74 billion, aligning closely with consensus estimates of $4.66 billion. However, the company projected a December quarter revenue of $4.40 billion, representing a 7% sequential decline and falling about 2% short of consensus expectations. Following these earnings results, several analyst firms adjusted their price targets for the company. Jefferies lowered its price target to $180, citing guidance below Street expectations. Mizuho also reduced its target to $145 due to margin pressures, maintaining an Underperform rating. Bernstein adjusted its target to $160, describing the third-quarter results as "decent." Evercore ISI decreased its price target to $226, noting earnings per share projections 11% below Street estimates. Additionally, Texas Instruments declared a quarterly dividend of $1.42 per share, payable on November 12, 2025, to stockholders of record as of October 31, 2025.
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