Texas Instruments stock rating upgraded by TD Cowen on industrial recovery

Investing.com - TD Cowen upgraded Texas Instruments (NASDAQ:TXN) from Hold to Buy and raised its price target to $245.00 from $200.00. The stock, currently trading at $219.66, is near its 52-week high of $220.78, with InvestingPro data indicating the stock is trading above its Fair Value.

The upgrade comes as TD Cowen gains confidence that the industrial semiconductor destocking phase is ending, positioning Texas Instruments to benefit from improving market conditions.

The firm cited Texas Instruments’ flexible capital expenditure plans for 2026 and beyond as a key factor in the decision to raise estimates and upgrade the stock rating.

While TD Cowen acknowledged lingering tariff and macroeconomic concerns, the firm believes Texas Instruments is well-positioned to outperform competitors in either a sharp or gradual recovery scenario, with a gradual recovery being their base case.

The firm noted that while Texas Instruments’ valuation appears rich, with a P/E ratio of 41.3, it considers the company "a unique asset" that should be a core technology, media, and telecom holding as free cash flow normalizes to margins exceeding 35%. The company’s strong market position is further evidenced by its 21-year streak of dividend increases, currently yielding 2.48%. Get access to 15+ additional valuable insights about Texas Instruments with InvestingPro.

In other recent news, Texas Instruments has been the focus of several analyst updates and strategic discussions. Goldman Sachs initiated coverage of Texas Instruments with a Buy rating, highlighting its significant market share in the analog and MCU sectors and projecting strong future cash flow. Meanwhile, Truist Securities maintained its Hold rating, noting management’s expectations for revenue growth to exceed Wall Street estimates by 5% in the second half of 2025. Additionally, Cantor Fitzgerald kept a Neutral rating and a $200 price target, expressing concerns about gross margin expansion due to increased depreciation expenses. TD Cowen also raised its price target to $200 from $160, maintaining a Hold rating, following discussions on the company’s strategic plans and cyclical industry dynamics. These developments reflect varied analyst perspectives on Texas Instruments’ financial health and future prospects.

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