Stifel Reiterates Hold Rating on Texas Instruments

Stifel analyst Tore Svanberg reiterated a Hold rating and $215.00 price target on Texas Instruments (NASDAQ: TXN).

“Following TXN’s CY26 capital management update, we believe the company is navigating a transition where the multi-year manufacturing build-out could yield FCF/share expansion.

That said, we maintain a cautious view of elevated CapEx and await meaningful visibility into revenue growth required to justify the LT strategy.

FCF is currently below preferred levels, as management’s target of $8.00 FCF/share implies a ~3.7% current FCF yield.

We still believe the company remains reliant on top-line performance to achieve its FCF/share targets, a variable that could remain relatively outside of management’s control.

However, we note several incrementally positive highlights from the call: (i) TXN is at the conclusion of its 6-year CapEx cycle; (ii) progress on capacity through Phase 3 modularity provides flexibility to scale equipment additions based on demand; and (iii) the $7.5bn SLAB acquisition could provide >$450mn in manufacturing synergies by CY30E.

On balance, we maintain our Hold rating.”

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