Texas Instruments stock price target raised to $220 by Benchmark

Investing.com - Benchmark has raised its price target on Texas Instruments (NASDAQ:TXN) to $220.00 from $200.00 while maintaining a Buy rating on the stock. The semiconductor giant, currently trading near its 52-week high at $214.92, boasts a market capitalization of $195.25 billion and offers a 2.53% dividend yield.

The price target increase follows Texas Instruments’ solid performance in the June quarter, despite the company providing somewhat lighter than expected earnings guidance for September. According to InvestingPro data, the company maintains strong financial health metrics with a notably high current ratio of 5.26x, indicating robust liquidity.

Benchmark noted that TXN’s second-quarter upside was at least partially driven by pull-in orders as customers attempted to build inventory ahead of expected tariff increases, particularly in the company’s Chinese Industrial business.

The Chinese Industrial segment grew 19% sequentially and 32% year-over-year, accounting for approximately 20% of Texas Instruments’ total revenue, according to Benchmark’s analysis.

Despite Texas Instruments guiding for a deceleration of growth, Benchmark highlighted that the company’s outlook mid-point remains $40 million ahead of the Street consensus.

In other recent news, Texas Instruments reported second-quarter revenue of $4.45 billion, surpassing consensus estimates. This performance was driven by broad-based industrial strength and seasonal improvements in personal electronics. Despite the positive earnings, the company’s management expressed a more cautious tone about future revenue growth compared to previous projections. Analysts from Stifel maintained a Hold rating with a $192 price target, reflecting a moderate outlook. Cantor Fitzgerald also reiterated a Neutral rating with a $200 price target, noting the cautious management tone. Rosenblatt Securities, however, maintained a Buy rating and a $245 price target, highlighting the company’s modest third-quarter guidance increase. Mizuho (NYSE:MFG) adjusted its price target slightly to $200, maintaining a Neutral rating, while Citi reiterated a Buy rating with a $260 price target, citing strong performance driven by China. These developments reflect varied analyst perspectives following Texas Instruments’ latest earnings report.

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