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.”

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