Stifel Reiterates Hold Rating on Texas Instruments (TXN)

Stifel analyst Tore Svanberg reiterated a Hold rating and $200.00 price target on Texas Instruments (NASDAQ: TXN).

The analyst said, ": Revs beat at $4.00bn (+4.1% vs. our $3.85bn estimate) primarily on Personal Electronics (20% of 2024 revs), while Ind. & Auto were soft, as we previewed.1Q25E Rev Outlook: Rev midpt. of $3.90bn (-2.7% q/q vs. our -2.0% q/q decline est.), was +1.3% vs. our $3.85bn est. (Street was in-line).1Q25E GMs impacting GAAP EPS: -$0.11 midpt. vs. our prior $1.16 est. We now forecast GMs of 55.0% (-180bps vs. our 56.8% est.) due to: (1) lower utilization (DOI hit all-time high at 241 days); (2) less favorable mix (industrial still weak); and (3) continuous depreciation headwinds (elevated capex).Investment Conclusion: Beyond these NT challenges, however, we believe an Ind./Auto recovery is possible in 2H (improving global ISM/PMI) even as TXN’s elevated capex is expected to peak this year. Maintain Hold on more limited NT catalysts, high valuation (32.7x CY26E P/E). TP unchanged at $200 (32.6x CY26E P/E)."

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Shares of Texas Instruments closed at $200.61 yesterday.

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