Citi says Texas Instruments (TXN) reported good Q4 results but guided Q1 gross margin lower than expected due to underutilization and higher depreciation. The firm believes the analog inventory replenishment will eventually happen in 2025 given sales are still down 25% from the peak. It expects Texas Instruments’ gross margins to bounce back as utilization trends higher and depreciation decreases. Citi reiterates a Buy rating on the shares as it believes Texas Instruments can achieve a peak earnings per share of over $10. Texas Instruments is the analyst’s top pick within the analog space with the best risk/reward and recommends investors add to positions on any weakness.
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