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Investing.com - Wolfe Research upgraded Texas Instruments (NASDAQ:TXN) from Peerperform to Outperform on Monday, setting a price target of $230.00. According to InvestingPro data, the stock currently trades at a P/E ratio of 33.5x and has recently entered oversold territory based on RSI indicators.
The upgrade comes after Texas Instruments’ stock has remained largely flat since early 2022, underperforming the Philadelphia Semiconductor Index (SOX) by approximately 60% and the S&P by around 40% during that period.
Wolfe Research had previously turned cautious on Texas Instruments in early 2022 following the company’s Capital Management presentation, which outlined plans for a multi-year capital expenditure program.
The research firm had anticipated that this extensive CapEx plan would constrain Texas Instruments’ cash flow and margins, leading to their previous neutral stance on the stock.
The new Outperform rating suggests Wolfe Research now sees a more positive outlook for the semiconductor manufacturer after this period of relative underperformance against major market indices.
In other recent news, Texas Instruments reported strong second-quarter financial results, with revenue reaching $4,448 million and earnings per share of $1.41. These figures exceeded analysts’ expectations, which were set at $4,358 million in revenue and $1.35 earnings per share. Despite this, the company indicated that revenue growth is expected to slow to 4% quarter-over-quarter in the third quarter. Analyst firms have responded with mixed reactions to these developments. TD Cowen lowered its price target for Texas Instruments to $230, citing challenges from tariffs and unmet investor expectations, but maintained a Buy rating. Truist Securities raised its price target to $196, despite noting the increased impact of tariffs on the company’s business outlook, while maintaining a Hold rating. KeyBanc reiterated its Overweight rating with a price target of $240, following the company’s second-quarter results and guidance. Meanwhile, Benchmark increased its price target to $220, maintaining a Buy rating, and Bernstein reiterated a Market Perform rating with a $180 price target. These recent developments highlight differing analyst perspectives on Texas Instruments’ future performance amid ongoing market challenges.
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