Mizuho Raises Texas Instruments Price Target to $160
Mizuho analyst Vijay Rakesh raised the price target on Texas Instruments (NASDAQ: TXN) to $160.00 (from $145.00) while maintaining an Underperform rating.
“TXN reported DecQ revenue in line with consensus $4.4B and guided MarQ to $4.5B, up 2% q/q, slightly above cons. $4.4B.
Key takeaways: 1) Improving bookings driving MarQ above seasonal (historically flat to down LSD% q/q) with Industrial, Data center; 2) MarQ GM implied flattish q/q at ~55.9% after DecQ better than expected with utilization, mix, top line, and Opex up LSD% q/q; 3) Data center growing, now $450M/qtr and ~10% of revs; catalysts include server Vcore CPU, power rail, VRM, and signal chain; 4) 2025 pricing down LSD% y/y and 2026E potentially down 2-3% y/y, and 5) 2026E Capex of ~$2-3B supporting return to positive FCF.
Maintain Underperform, adjust estimates BELOW consensus, PT to $160 (prior $145), 26x (prior ~23x) C26E P/E in line with peer group at 26x as we see current TXN valuations stretched at ~32x, and we look to the Capital Management Day on Feb 24.”
The price target and rating on this page are the opinion of the issuing research firm and its analyst, not of Price Target. This page is published for informational purposes only and is not investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not guarantee future results. Consider your own circumstances and consult a licensed financial adviser before making investment decisions.
This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.
