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On Thursday, Truist Securities analyst William Stein adjusted the price target for Texas Instruments (NASDAQ:TXN), reducing it to $171 from the previous $195, while maintaining a Hold rating on the stock. According to InvestingPro data, the stock is currently trading near its Fair Value, with a P/E ratio of 29.07. Stein’s commentary highlighted that despite the looming threat of tariffs, Texas Instruments has experienced minimal impact. The company is currently benefiting from a cyclical recovery in the semiconductor industry, which has been anticipated for over a year, and this trend is overshadowing tariff concerns.
Texas Instruments has acknowledged the potential risk tariffs pose to its business, but the company’s recent performance and positive outlook have been unexpected. The company maintains strong financial health with a current ratio of 4.12 and operates with a moderate debt level. Stein suggests that investors who are confident in Texas Instruments’ current trajectory should consider buying into companies with significant industrial exposure, such as Microchip Technology (NASDAQ:MCHP), Analog Devices (NASDAQ:ADI), and Texas Instruments itself, all of which hold a Hold rating from Truist Securities.
In contrast, Stein favors companies with a strong link to artificial intelligence, such as NVIDIA (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), and Monolithic Power Systems (NASDAQ:MPWR), all of which have been given a Buy rating by Truist Securities. The analyst has also revised the estimated earnings per share (EPS) for the calendar year 2026 to $6.46, up from the previous $6.30.
The reduction in Texas Instruments’ price target reflects the analyst’s current assessment of the company’s value, taking into account the broader economic factors and industry trends. Despite the lowered target, the Hold rating indicates that Truist Securities does not currently recommend either buying or selling the stock but suggests a neutral stance. InvestingPro subscribers can access 12 additional key insights about TXN, including its impressive 21-year dividend growth streak and comprehensive financial health analysis through the exclusive Pro Research Report, available for over 1,400 US stocks.
In other recent news, Texas Instruments reported first-quarter 2025 earnings that exceeded expectations, with earnings per share (EPS) reaching $1.28 compared to the forecast of $1.06. The company’s revenue also surpassed expectations, hitting $4.1 billion, driven by an 11% year-over-year increase. Following these results, Texas Instruments provided positive guidance for the second quarter, with anticipated revenue between $4.17 billion and $4.53 billion. Despite this strong performance, KeyBanc and JPMorgan have both revised their stock price targets for Texas Instruments, citing broader market conditions and potential future challenges. KeyBanc lowered its target to $215 while maintaining an Overweight rating, and JPMorgan adjusted its target to $195, also keeping an Overweight rating. Analysts highlighted the company’s ability to manage tariff-related challenges, with Texas Instruments having flexibility in its global manufacturing operations. However, JPMorgan noted potential risks in the latter half of the year due to anticipated weaker macro demand and tariff impacts. These developments reflect Texas Instruments’ strategic positioning amidst geopolitical uncertainties and its continued focus on growth across various end markets.
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