UBS Raises Texas Instruments Price Target to $260
UBS analyst Timothy Arcuri raised the price target on Texas Instruments (NASDAQ: TXN) to $260.00 (from $245.00) while maintaining a Buy rating.
“Amid investor sentiment on this stock that has been lackluster at best, TXN is starting to sound better with the revenue bias again shifting to seasonal plus and bookings/backlog commentary turning more constructive – all consistent with the read we had across analog coming out of our conference in early December.
Data center is still small for analog companies like TXN (just about to cross 10%) but taken in combination with auto content growth vectors and pockets of strength within industrial (factory automation, energy, A&D) we remain constructive – especially as investors are looking for ideas in semis that have not already gone absolutely vertical.
Specific to TXN, it is already annualizing ~$6/share in FCF which we think is more like ~$8.5 when adjusting for capex coming down substantially over next 4-6 quarters based on TXN’s commentary.
From this baseline, it is no longer hard to see how FCF could approach $10/share this year and ~$12/share next year with revenue only growing mid-teens/yr in C2026E/2027E and we have shown many times that this stock is more correlated to FCF than gross margin.
We will also likely hear a positive message from the company about FCF in another month at its annual Capital Management call which we think will support some of our numbers.
Net, we trim EPS estimates modestly on below the line items, our FCF is little changed (C2027E at $11B) and we raise our PT $15 to $260. We maintain our Buy rating and TI is a Top Pick for 2026.”
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