--> TXN -1.76% pre market - no volume
Texas Instruments: Some on the street calling post-earnings sell-off a buying opportunity; Analysts raise tgts after beat, in-line guidance
- Texas Instruments target raised to $102 from $100 at RBC Capital Mkts; TXN reported another impressive quarter and guided De-qtr rather conservatively with mid-point of their guide suggesting sales down 10% q/q vs. seasonality at down 8%. Firm thinks fundamentally, TXN remains well positioned to sustain double digit organic growth vs. their guide that implies sales deceleration -- they see upside from sustained non-tech growth coupled with AAPL ramp benefits and share gains.Furthermore, firm thinks gross and op-margins have an upside bias as TXN benefits from better 300mm yields, lower OPEX/R&D coupled with sustained mix tailwinds (more auto/industrial); Outperform.
- Texas Instruments target raised to $110 from $95 at Drexel Hamilton; Firm highlights co's ability to continue to benefit from the broad strength most of the analog semiconductor industry has been enjoying for the last several quarters. They added that TI delivered a very strong 3Q results and gave equally positive December guidance with clean upside to expectations on sales and earnings. While recent stock appreciation and sector valuations argue heightened investor sentiment, firm believes industry leaders with broad sector GDP leverage should continue to grow, benefitting from healthy underlying macro trends. In addition, selective companies such as TI, that have positioned themselves to earn material gross and operating margin leverage, should be able to at least support current valuation multiples with further appreciation likely driven by continued EPS growth; Buy.
- Texas Instruments target raised to $98 from $85 at Stifel; Overall, they believe TI continues to operate well, especially with regards to its Industrial and Automotive end markets, which have sustained their strength and point to continued momentum. Firm also highlights co's capital mgmt strategy and solid FCF generation in the Sept. quarter and its ability to deliver upside to its Sept. quarter results and Dec. quarter outlook. Overall, firm continues to remain impressed with TI's ability to generate record margins and further improvements to the model that drives its capital mgmt strategy. TI remains one of the most diversified analog cos in the industry, maintaining a leading market share in analog and a growing embedded processing share with improved profitability. While co has demonstrated impressive execution on its business and capital mgmt strategies, firm is maintaining Hold especially considering the stock is currently trading at 21.2x their CY18 EPS est and a FCF yield of 4.4%.
- Texas Instruments target raised to $97 from $89 at B. Riley & Co.; Firm highlighted that two negatives emerged, though seem minor in their view given company context and RILY's analysis of company dynamics. For example, C3Q's GM gain was just 20 bps qq despite strong growth, though TXN retained a +70% long-term fall-through target. In addition, C4Q's outlook growth was 300 bps below the Street, though Mgt repeatedly asserted a lack of end market or geo weakness. Overall, firm expects Street C17&18 EPS to migrate higher and believe Auto and Industrial strength augurs well for MCHP $93.31 (Buy; $120.00 PT) and ON $20.37 (Buy; $21.00 PT).
- Texas Instruments target raised to $96 from $85 at Mizuho; Firm noted they strong Automotive / Industrial commentary could be positive for CY/ON/ALV as semis continue to drive a "content" story.
- Target moves: Loop Capital ups tgt to $102 from $90; Credit Suisse raises tgt to $110 from $95; Oppenheimer raises tgt to $110 from $92; Robert W. Baird raises tgt to $100 from $85; Nomura raises tgt to $90 from $80; SunTrust increases tgt to $96 from $86