Stifel Reiterates Buy on Texas Instruments, $360 PT

Stifel reiterated a Buy rating and $360 price target on Texas Instruments (NASDAQ: TXN).

“The YTD SIA/WSTS billings screen positively for TXN, led by general purpose analog (+22% YTD y/y), where TXN is most heavily weighted, with embedded also recovering (MCU +17% YTD y/y); we anchor on the YTD y/y trend rather than individual data points given the recent volatility.

June ISM data reinforces the industrial recovery: Manufacturing PMI held at 53.3% (sixth straight month of expansion), New Orders remained expansionary at 56.0%, and Customers’ Inventories at 42.3% remained “too low,” which is typically a positive indicator for future production.

We are incrementally more constructive on TXN: we believe the analog cycle has turned, with a structural CapEx step-down driving an FCF inflection and Data Center providing an added growth engine.

As such, we reiterate our Buy Rating with a 12-month target price of $360 based on a 34.7x CY27E P/FCF multiple.”

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