Analysts at Deutsche Bank retained Hold rating on Texas Instruments Inc. (NYSE: TXN) as they believe that the latter’s valuation is relatively in line with broader market. They set a price target of $35 for the stock.
Texas Instruments lowered its second-quarter guidance to the range of 51 cents to 55 cents per share, down from 51 cents to 60 cents a share. It expects revenue to be between $3.36 billion to $3.50 billion, compared to $3.41 billion to $3.69 billion previously. Analysts’ expects earnings of 57 cents on revenue of $3.55 billion. It states that TXN’s new view is directly related to poor market performance of Nokia Corp. TXN expects that its other products like communications infrastructure and personal computers are trending as expected with the help of rising demand for tablets. DB analysts state that TXN’s guidance reduction highlights that its Nokia exposure is more than just baseband. They state that TXN’s management sounded confident about business trends in its core businesses.
On a year-to-date basis, TXN’s share performance is 3.08 percent, and as compared to Standard & Poor’s 500, its YTD share performance is -0.29 percent.
Texas Instruments is a leading designer and supplier of digital signal processors. It has a market capitalization of $38.90 billion, and P/E ratio of 13.190. It has more than 1100 outstanding shares.
Shares of TXN gained 1.07 percent or 35 cents to trade at $33.02 in the closing session.
