Texas Instruments (TXN – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Vivek Arya from Bank of America Securities maintained a Hold rating on the stock and has a $220.00 price target.
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Vivek Arya has given his Hold rating due to a combination of factors influencing Texas Instruments’ current market position. Despite the company’s efforts to expand its manufacturing capabilities in the US, historical data shows that its analog and embedded sales have consistently underperformed relative to the broader market. The expansion of US fabs, although beneficial, does not necessarily ensure the company’s ability to regain market share, especially considering the global nature of electronics assembly and the persistent inventory excess in the industry.
Additionally, Texas Instruments faces increasing competition, particularly from Chinese companies, and the potential for further market share shifts remains contingent on consumer electronics demand, which is inherently unpredictable. Moreover, the company’s stock is trading at a premium compared to its peers, which could hinder its competitive edge. These challenges contribute to Arya’s decision to maintain a Neutral or Hold rating on the stock.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $200.00 price target.
Based on the recent corporate insider activity of 89 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TXN in relation to earlier this year.