Barclays Upgrades Texas Instruments to Equalweight
Barclays analyst Tom O’Malley upgraded Texas Instruments (NASDAQ: TXN) from Underweight to Equalweight with a price target of $250.00 (from $175.00).
“TXN sounds much more constructive, particularly in Industrial and Data Center, which grew >20% / >25% Q/Q respectively in March.
We expect Industrial grows well above seasonal again in June and for DC to grow >90% in CY26.
As we highlighted earlier this year, we prefer companies with high Industrial exposure as PMIs inflect but held out on getting more positive on TXN due to the company specific headwinds.
With the company printing much better results and some additional pricing uplift still in their back pockets we get off the UW rating.
Historically TXN is +HSD% in the first 3mo that PMIs inflect above 50 and up ~20% in the first 12mo.
We do think investors will increasingly start to look at FCF but would point out the name trades at 26x (on our FCF est.) vs. historical mid-teens and still has some execution work on better than seasonal Street numbers in 2H.
We now model $10/share of FCF in CY27. Our rating moves to EW and we raise our PT to $250.”
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