Texas Instruments stock rating reiterated at Buy by Benchmark

Investing.com - Benchmark has reiterated its Buy rating on Texas Instruments (NASDAQ:TXN) with a price target of $220.00, following a recent investor fireside chat. The target represents a significant upside from the current price of $187, though InvestingPro’s Fair Value analysis suggests the stock may be slightly overvalued.

The research firm hosted Texas Instruments’ Investor Relations Director Mike Beckman during its 12th Annual TMT Conference last week, where the company restated its core strategic philosophy focused on growing free cash flow per share. The strategy has proven successful, with TI maintaining dividend payments for 55 consecutive years and achieving a solid 58% gross profit margin.

During the discussion, Beckman characterized TI’s market segments—analog and embedded processing—as the "best neighborhoods" in the semiconductor industry, citing above-average long-term growth driven by application diversity and increasing semiconductor content per system. With a market capitalization of $170 billion and strong financial health metrics according to InvestingPro, TI remains a prominent player in the semiconductor space.

The company’s long-term strategy continues to be built upon four competitive advantages: its product portfolio, broad channel reach, diverse customer base, and proprietary manufacturing technology development.

Benchmark indicated that Texas Instruments’ consistent long-term approach is what the company believes drives its future success and increases shareholder value.

In other recent news, Texas Instruments has been at the center of several noteworthy developments. The company’s quarterly results and guidance did not meet investor expectations, leading to a significant after-hours share drop of more than 10%, as noted by TD Cowen. This firm also lowered its price target for Texas Instruments from $245 to $230, while maintaining a Buy rating, suggesting ongoing challenges from tariffs and market pull-ins. Meanwhile, Wolfe Research upgraded Texas Instruments’ stock rating from Peerperform to Outperform, setting a price target of $230, citing an improved outlook despite the stock’s underperformance compared to broader indices.

Additionally, Truist Securities raised its price target for the company to $196 from $171, maintaining a Hold rating, even as the analyst highlighted a shift in the company’s stance on tariffs affecting its business outlook. At the Citi 2025 Global TMT Conference, Texas Instruments’ CFO Rafael Lizardi discussed the company’s business outlook and strategy, noting a weakening market sentiment since earlier in the year. Lizardi attributed this to temporary order pull-ins, which created fluctuations in demand. These recent developments reflect the mixed perspectives from analysts and the company’s ongoing navigation of market challenges.

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