Texas Instruments is Facing Tariff Headwinds to Demand Improvement, BofA Says

MT Newswires Live
10/13

Texas Instruments (TXN) has high-quality assets, but near- and medium-term demand improvement in the industrial economy could be dampened due to global tariffs, BofA Securities said in a Monday research report.

The company also has limited exposure to the artificial intelligence capital expenditure cycle and has a "rich valuation" despite relatively lower free cash flow margins. It also faces gross margin pressures if demand does not pick up, according to the note.

BofA said it lowered its fiscal 2025, 2026, and 2027 EPS estimates to $5.54, $6.05, and $6.91, respectively.

Texas Instruments could surprise to the upside if the US government's reshoring efforts compel more products to be made in the US, given the company's large US manufacturing base, BofA said. The company could also benefit from investor rotation away from AI stocks, a rebound in industrial and automotive activity, as well as a lower tax rate due to new US legislation, analysts wrote.

The brokerage said it downgraded the stock to underperform from neutral and lowered its price target to $190 per share from $208.

Price: 173.91, Change: +2.21, Percent Change: +1.29

免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。

熱議股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10