By Tae Kim

Texas Instruments stock is an attractive buying opportunity, even after its rally this year, according to TD Cowen.

On Thursday, analyst Joshua Buchalter raised his rating for the company's stock to Buy from Hold and increased his price target to $245 from $200.

"We see TI as a unique asset with defensible characteristics that should be a core holding for TMT [Technology, Media, and Telecommunications] and generalist investors," he wrote. "The company offers a best-in-class margin profile with multidecade record of operational execution."

In early trading Friday, Texas Instruments shares were down 0.2% to $219.20.

The analyst said once demand rises Texas Instruments' free-cash-flow will increase faster than investors expect as the company can take advantage of prior capacity investments.

"We view TI as the best cycle recovery play," he wrote.

The chip maker sells the basic building-block chips that go into products in nearly every sector of the economy, from autos and industrials to consumer electronics. Because the company's more than 100,000 customers are such a varied group, investors consider Texas Instruments to be a bellwether for the technology industry.

In April on the conference call with investors and analysts, management said there is "high uncertainty" in the environment due to tariffs and geopolitics, but that they don't see a near-term effect on revenue for the June quarter.

Texas Instruments stock is up 17% this year, compared with the 14% rise for the iShares Semiconductor ETF.

Write to Tae Kim at tae.kim@barrons.com

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July 11, 2025 11:09 ET (15:09 GMT)

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