Texas Instruments stock rating reiterated at Market Perform by Bernstein

Published 23/07/2025, 16:22
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Investing.com - Bernstein SocGen Group has reiterated a Market Perform rating and $180.00 price target on Texas Instruments (NASDAQ:TXN), a prominent player in the semiconductor industry with a market capitalization of $170 billion. According to InvestingPro data, the company maintains a ’Fair’ overall financial health score, operating with moderate debt levels and strong liquidity.

Texas Instruments reported Q2 revenue of $4,448 million and earnings per share of $1.41, exceeding Street expectations of $4,358 million and $1.35 per share. The company noted continued recovery across most end markets during the quarter. The company currently trades at a P/E ratio of 35.4x, which InvestingPro analysis suggests is above its Fair Value.

The Industrial segment led growth with mid-teens quarter-over-quarter improvement, while Personal Electronics grew high single digits. Communications Equipment and Enterprise Systems both grew approximately 10% quarter-over-quarter, though the Automotive segment showed weakness, declining low single digits sequentially while growing mid-single digits year-over-year.

Analog and Other revenues exceeded expectations, while Embedded revenues came in slightly below anticipated levels. The $180 price target represents a 30x multiple on average FY26/27 EPS.

Bernstein expressed a cautious stance on the analog space overall, citing concerns about potential pull-forward effects and elevated valuations in the sector.

In other recent news, Texas Instruments reported second-quarter revenue of $4.45 billion, exceeding expectations and showing a 2.3% increase compared to previous estimates. Despite this strong performance, the company’s earnings guidance for the September quarter was slightly lighter than anticipated, with projected revenue of $4.63 billion, a 4% quarter-over-quarter increase. Benchmark responded by raising its price target for Texas Instruments to $220 while maintaining a Buy rating, citing the company’s solid performance. Meanwhile, Stifel reiterated a Hold rating with a $192 price target, acknowledging the broad-based industrial strength and seasonal improvements in personal electronics. Cantor Fitzgerald maintained a Neutral rating with a $200 price target, noting a more cautious tone from management compared to previous projections of accelerating revenue growth. Rosenblatt Securities reiterated its Buy rating with a $245 price target, highlighting the stronger-than-expected second-quarter results and a modest increase in third-quarter guidance. In contrast, Mizuho (NYSE:MFG) lowered its price target to $200, maintaining a Neutral rating, after the June quarter earnings report. These developments reflect a mix of optimism and caution among analysts regarding Texas Instruments’ future performance.

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