Citi analyst Christopher Danely reiterated a Buy rating on Texas Instruments (TXN – Research Report) today and set a price target of $235.00.
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Christopher Danely has given his Buy rating due to a combination of factors driving Texas Instruments’ potential growth. One significant reason is the anticipated replenishment of analog inventory by 2025, where Texas Instruments is expected to benefit the most due to its expanded manufacturing capacity and lower depreciation. This potential inventory replenishment could lead to a peak earnings per share (EPS) of over $10.00, positioning Texas Instruments as a leader in the analog sector.
Furthermore, Texas Instruments has maintained a capital expenditure floor of $2 billion and has plans for a $5 billion capex spend in 2025, with future expenditures tied to revenue growth. The company aims to reach significant financial milestones, including peak sales of $20 billion and a substantial increase in free cash flow per share. With an expected share price return of 30.2%, Danely’s analysis suggests that Texas Instruments presents an attractive risk/reward profile for investors.
In another report released on January 24, Benchmark Co. also reiterated a Buy rating on the stock with a $230.00 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.