Analyst Tristan Gerra of Robert W. Baird maintained a Hold rating on Texas Instruments (TXN – Research Report), retaining the price target of $175.00.
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Tristan Gerra has given his Hold rating due to a combination of factors related to Texas Instruments’ current operational and financial outlook. A significant consideration is the company’s inventory levels, which although improving, remain at multi-year highs. This casts doubt on a swift recovery in the analog market, which is a crucial segment for Texas Instruments. Additionally, while the company benefits from being nearly entirely front-end insourced, which provides cost and geo-dependability advantages, this strategy may also necessitate increased capital expenditures.
Texas Instruments’ capital expenditure plans for 2025 and 2026 have remained unchanged, with expectations of $5 billion in 2025 and a variable range of $2 to $5 billion in 2026, depending on revenue outcomes. The company has outlined potential revenue scenarios for 2026 but acknowledges a higher likelihood of revenue hitting the lower end of these projections. Furthermore, the company’s extensive plans for internal supply and assembly could impact its future flexibility and investment needs. These elements together contribute to a cautious outlook, justifying the Hold rating.
According to TipRanks, Gerra is a 5-star analyst with an average return of 8.5% and a 50.40% success rate. Gerra covers the Technology sector, focusing on stocks such as Himax Technologies, Intel, and ON Semiconductor.
In another report released today, Stifel Nicolaus also maintained a Hold rating on the stock with a $200.00 price target.