TD Cowen Raises Texas Instruments Price Target to $240
TD Cowen analyst Joshua Buchalter raised the price target on Texas Instruments (NASDAQ: TXN) to $240.00 (from $225.00) while maintaining a Buy rating.
“1Q26 guidance above Street drove shares +8%, we think in part due to favorable implied 1Q26 GM% guide (~57%).
Demand is improving gradually, with above-seasonal guide supported by improving bookings/backlog; new disclosure reveals 35% 2yr CAGR for datacenter sales.
Utilization could take time to meaningfully grow, but >$9 FCF/sh in sight for 2027 adds valuation support. Buy, $240 PT.
Our Thoughts: Overall, results came in a bit better than our expectations (here); TI guided above-seasonal growth for March with GM% following suit—near 57% versus our modeled ~55%.
Cycle tone largely remains the same, with demand gradually improving, not necessarily rebounding.
Our FY26/27 estimates move higher, though increased utilization rates later in the year could signal more firm conviction in durable demand improvement from here.”
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