Shares of Texas Instruments Inc (NASDAQ:TXN) rallied in early trading on Thursday, after the company on Wednesday reported upbeat first-quarter results.
Here are the key analyst insights:
- Rosenblatt Securities analyst Kevin Cassidy reiterated a Buy rating, while lifting the price target from $240 to $330.
- JPMorgan analyst Harlan Sur maintained an Overweight rating, while raising the price target from $227 to $280.
Check out other analyst stock ratings.
Rosenblatt Securities: Texas Instruments delivered a strong beat and raise quarter, as the company responded to rising industrial and data center demand, Cassidy said in a note. The first quarter revenues grew 9.1% sequentially and 18.6% year-on-year to $4.83 billion, while gross margins expanded by 210 basis points (bps) and 120 bps year-on-year to 58.0%, both coming in higher than consensus estimates of $4.53 billion and 56.2%, respectively, he added.
Management indicated stable average selling price (ASP) both sequentially and year-on-year, which is "a tailwind to profitability for a business that would typically see ~4% ASP decline Y/Y," the analyst stated. Texas Instruments' long-term strategy for building manufacturing capacity and inventory "seems to be delivering" and the company could "outperform peers during this upcycle," he further wrote.
JPMorgan: Texas Instruments delivered strong quarterly results, "driven by continued strength in industrial recovery trends and Data Center momentum," Sur said. The company's earnings came in at $1.68 per share, above consensus of $1.38 per share, he added.
Analog revenue grew 22% year-on-year and Embedded Processing sales were up 12% in the quarter, the analyst stated. Management guided to around 8% sequential growth in revenues in the second quarter, which is "above typical seasonal trends," he further wrote.
TXN Price Action: Shares of Texas Instruments had risen by 18.34% to $279.65 at the time of publication on Thursday.
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