Nomura Securities Upgrades Texas Instruments (TXN) to Neutral

Nomura Securities upgraded Texas Instruments (NASDAQ: TXN) from Reduce to Neutral with a price target of $45.00 (from $42.00).

Analyst Romit Shah comments, "We downgraded TI in December primarily on the assumption that margins were leveling off and valuation. However, we thought TI's earnings last week was arguably the best report this earnings season. Margins have more upside than we had previously expected and the core business is showing better relative growth that likely drives share gains in 2014. As such, we are taking our bear call off the table and upgrading the stock from Reduce to Neutral. TI continues to execute on its capital allocation strategy. Over the last 12 months, the company returned nearly 100% of its adjusted free cash flow to shareholders. TI trades at 17x our 2015 EPS estimate, ex-cash, and is slightly lower than the mixed signal peers."

The firm maintained FY14E at $2.48; FY15E EPS at $2.80.

For an analyst ratings summary and ratings history on Texas Instruments click here. For more ratings news on Texas Instruments click here.

Shares of Texas Instruments closed at $45.23 yesterday.

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