Is Wall Street Too Optimistic On Texas Instruments? Analyst Says Yes, Here's Why
Portfolio Pulse from Anusuya Lahiri
Bernstein analyst Stacy Rasgon downgraded Texas Instruments Inc (NASDAQ:TXN) from Market Perform to Underperform, maintaining estimates and a $145 target price. Rasgon highlighted that the company's capex outlook has been significantly raised as it builds capacity to support revenue growth over the next 10-15 years. However, Rasgon believes that the Street models do not fully consider the consequences of TXN's plans and that gross margin expectations appear too high. The analyst also pointed out that Q4 revenue estimates are likely too high, leading to over-exuberance for 2024 numbers.
August 30, 2023 | 5:08 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Texas Instruments has been downgraded by Bernstein analyst Stacy Rasgon from Market Perform to Underperform. The analyst maintains a $145 target price and believes that the Street models do not fully consider the consequences of TXN's plans to significantly raise its capex outlook.
The downgrade by Bernstein analyst Stacy Rasgon is likely to negatively impact the stock price of Texas Instruments in the short term. The analyst's concerns about the company's high capex outlook and overestimated gross margin expectations could lead to a decrease in investor confidence, potentially driving the stock price down.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100