Texas Instruments (TXN) PT Raised to $190 at Mizuho

Mizuho analyst Vijay Rakesh raised the price target on Texas Instruments (NASDAQ: TXN) to $190.00 (from $170.00) while maintaining a Neutral rating.

The analyst commented: "TXN reported its JunQ in line at $3.82B, with SepQ guided up 7% q/q, in line with consensus, better than expectations of a miss.

Key takeaways: 1) JunQ Autos/Industrial weaker q/q, strength from "TI Calculators", while potentially seeing SepQ having pockets of growth in Industrial, though we believe Autos continues to see headwinds, 2) 2024E Analog Pricing potentially down 3-5% y/y, as we noted (LINK), vs up 5%/15%/15% in 2023/22/21, 3) Inventory DOI at 229 days (‾7-8mths) and expected to stay near current levels could be a challenge, and 4) Maintained Capex at ‾$5B/yr with some Chips Act credits, but we believe increasing domestic analog supply in key geography China remains a challenge.

Maintain Neutral, adjusting estimates and PT to $190 from $170. We believe TXN is executing well, but persistent auto challenges, increasing China competition, high internal inventories, and premium valuations remain headwinds."

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