Tuesday, Texas Instruments (NASDAQ:TXN) received a reiterated Buy rating and a $250.00 price target from Rosenblatt analysts ahead of its fourth-quarter earnings report, which is scheduled for release after the market closes on January 23, 2025.
Texas Instruments is expected to present an in-line December quarter, with revenue estimates matching the consensus at approximately $3.85 billion to $3.88 billion and GAAP EPS forecasted at $1.18, slightly under the consensus estimate of $1.21.
The analysts also provided insights into the March quarter outlook, anticipating revenues to be around $3.80 billion, which is below the consensus estimate of $3.87 billion, and GAAP EPS to be at $1.10, compared to the consensus estimate of $1.18.
The projections reflect a cautious stance on the recovery trajectory for Texas Instruments’ key end markets, automotive and industrial, which are expected to see a more modest recovery in the first half of 2025.
The analysts noted "This up-cycle, in our view, should help TI maintain a high-teens analog share into the next decade, as the analog semi industry needs to add significant 300mm analog fabs to match TI and analog/embedded customers are increasingly favorable to geopolitically stable capacity."
The $250 price target set by Rosenblatt is based on a mid-20s price-to-earnings (P/E) multiple applied to their forecasted fiscal year 2026 EPS.
The firm’s stance indicates confidence in Texas Instruments’ long-term growth potential, despite the current mixed performance in some of its core markets.
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