Research
Research Alert: CFRA Maintains Hold Opinion On Shares Of Texas Instruments Incorporated
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We up our 12-month target to $273 from $224, on a P/E of 30x our 2027 EPS, above peers and TXN's five-year historical forward average of about 27x to reflect our view of improving fundamentals and FCF potential. After a strong Q1 beat, we raise our 2026 EPS to $7.87 from $6.76 and 2027 to $9.10 from $7.73. Industrial revenue surged more than 30% in Q1 (20% seq.), with the broader industrial market segment (thousands of smaller customers) re-engaging after an extended hibernation. Despite this, Industrial remains 15% below its Q3 2022 peak, suggesting at least 4-6 quarters of further runway ahead. Years of elevated capex is now allowing TXN to fulfill customer demands with no shortages and is now allowing TXN to take back share given its greater supply/availability. Easing of capex spend is also starting to play out, which we see driving FCF well over $8B by '27 (vs. $2.6B in '25) while gross margins are also turning the corner, as utilization improves and pricing holding up better than expected.
$TXN