Seaport Global upgrades Texas Instruments stock rating to Neutral from Sell

Investing.com - Seaport Global Securities upgraded Texas Instruments (NASDAQ:TXN) stock rating to Neutral from Sell on Monday, joining a broader positive sentiment in the semiconductor sector.

The upgrade comes as the research firm acknowledges that its previous concerns about the analog inventory cycle and slowing macro economy did not materialize as expected. According to InvestingPro data, sector peer Analog Devices maintains strong financial health with a current ratio of 2.08, indicating robust operational stability.

Seaport Global noted that while it sees no strong catalysts for Texas Instruments, conditions appear unlikely to deteriorate further, and inventories may begin to improve.

The firm also cited increased market risk appetite as a factor in its decision to upgrade the semiconductor manufacturer.

In addition to Texas Instruments, Seaport Global also upgraded Analog Devices (NASDAQ:ADI) to Neutral from Sell and raised its estimates for both companies to consensus levels.

In other recent news, Analog Devices has received favorable assessments from several credit rating agencies for its latest senior notes offering. Moody’s assigned an A2 rating, Fitch gave an ’A’, and S&P Global Ratings provided an ’A-’, all citing the company’s strong financial profile and diversified operations. These ratings highlight Analog Devices’ operational resilience and financial flexibility, even as the new issuance temporarily increases debt leverage. Additionally, Cantor Fitzgerald upgraded Analog Devices from Neutral to Overweight, raising the price target to $270, citing the company’s advantageous industrial exposure and potential benefits from an industry upcycle. The firm also reiterated its Overweight rating, emphasizing Analog Devices’ strong gross margin performance, which has recovered to nearly 70%. Meanwhile, Goldman Sachs initiated coverage with a Buy rating and a $285 price target, noting the company’s competitive differentiation and superior growth potential. These developments suggest confidence in Analog Devices’ strategic positioning and financial health, as it continues to navigate the competitive semiconductor market.

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