Cantor Reaffirms Neutral on Texas Instruments, $340 Price Target

Cantor Fitzgerald analyst Matthew Prisco reiterated a Neutral rating and $340 price target on Texas Instruments (NASDAQ: TXN).

“While we look for a modest beat and raise, we note that consensus estimates for TXN are the most aggressive vs seasonal across the Analog group (TXN is seasonally weaker here vs the rest of the group) – and couple this with the fact that TXN remains the preferred relative long within Analog, setup here is perhaps a bit more challenged vs peers.

That said, we look for TXN to guide for yet another above seasonal Q with favorable pricing dynamics (hearing TXN’s typical pricing strategy is resulting in more aggressive pricing adjustments today), positive cyclical KPIs, and strong secular growth from areas such as DC (~12% of 1H revs).

TXN remains in a unique position within the Analog group given its capacity footprint, which we believe will prove to be a meaningful advantage as we further progress into the cycle.

Given the above, while we don’t necessarily have great conviction in this earnings report acting as a major positive catalyst, we continue to be bulls on the Analog cycle and believe that the current defensive tape is advantageous to Analog relative performance.

We reiterate upside earnings power of $14 in CY28 (vs cons $12.54), still offering plenty of upside for shares trading at a 21x multiple today (we believe fair mid-cycle multiple should be closer to mid-20x).”

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