CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We up our 12-month target to $172 from $157, on P/E of 24x our ’25 EPS view, near five-year historical forward average. We reduce our ’24 EPS estimate to $5.75 from $7.05 and ’25 to $7.15 from $7.83. TXN posts Q4 EPS of $1.46 vs. $2.13, missing the $1.49 consensus. Sales fell 13% (-10% seq.) while Q1 guide was disappointing (implies 12% seq. drop), both missing expectations, hurt by pronounced weakness from industrial customers and a sequential decline in automotive. Gross margin of 59.6% was narrower than our view, compressing vs. 66.1% a year ago and 62.1% in Q3, hurt by lower volume and utilization. Although we believe customers are rebalancing inventories within autos/industrials (cancellations remain elevated), visibility surrounding the trajectory of a recovery remains low. Still, content growth upside (+10% annually) in both end-markets remains intact, with a revenue/gross margin trough likely being seen in 4-6 months. Elevated capex spend is constraining FCF (7.7% of sales LTM vs. 29.6% a year ago).