Texas Instruments price target lowered to $165 from $167 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Texas Instruments (TXN) to $165 from $167 and keeps an Underweight rating on the shares. TI was “in the ballpark on revenue” for Q4 results and Q1 guidance, but lower-than-expected on the gross margin outlook as margins that were once above 70% are down to the mid 50s, the analyst tells investors. This dynamic “frames our cautious view,” which is that TI will see gross margins underperform peers through calendar year 2026, with free cash flow only slightly better than reported EPS in 2026, the analyst tells investors.