Jefferies Cuts Estimates for Texas Instruments Following Mid-Quarter Update; Still a “Buy” Though (TXN)

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Semiconductor maker Texas Instruments, Inc. ( TXN ) on Wednesday received some mixed commentary from analysts at Jefferies & Co.

The firm reiterated its "Buy" rating and $33 price target on TXN, which suggests a 15% upside to the stock's Tuesday closing price of $28.58. However, Jefferies lowered its 2012 earnings estimate from $1.73 to $1.69 per share, and its 2013 view from $2.25 to $2.12.

A Jefferies analyst commented, "Ex-$60m insurance proceeds from last year's Japan quake, TI missed its prior SepQ revenue guidance by 185bps but met the EPS target at the mid-point due to cost reductions. TI noted flat Auto and Wireless slightly better due to OMAP in new tablets. We like TI's 2013 FCF yield of 8.5%, and dividend yield of 2.4%. We view its weaker signal as a slight caution for Analog Devices ( ADI ), Linear (Nasdaq: LLTC), and Maxim Intergrated (Nasdaq: MXIM)."

Texas Instruments shares were mostly flat in premarket trading Wednesday.

The Bottom Line
Shares of Texas Instruments ( TXN ) have a 2.38% dividend yield, based on last night's closing stock price of $28.58. The stock has technical support in the $26-$27 price area. If the shares can firm up, we see overhead resistance around the $30-$32 price levels.

Texas Instruments, Inc. ( TXN ) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: ADI , TXN

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