Vivek Arya, an analyst from Bank of America Securities, maintained the Hold rating on Texas Instruments (TXN – Research Report). The associated price target remains the same with $176.00.
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Vivek Arya has given his Hold rating due to a combination of factors influencing Texas Instruments’ current market position. The company has shown resilience in navigating tariffs and has demonstrated a strong performance in the first quarter, with expectations of continued growth. However, there are uncertainties surrounding the impact of tariffs in the latter half of the year, which could affect inventory levels and factory loadings.
Despite the potential for above-seasonal growth, Arya maintains a Neutral stance due to macroeconomic uncertainties, the shift to higher-cost production, and the premium valuation of the stock. While the industrial sector shows signs of recovery driven by low customer inventory levels, the automotive sector’s recovery remains uncertain. The company’s ability to leverage its non-US manufacturing footprint provides some flexibility, but long-term risks from local replacements in China persist.
According to TipRanks, Arya is a 5-star analyst with an average return of 9.0% and a 45.86% success rate. Arya covers the Technology sector, focusing on stocks such as Nvidia, Intel, and Marvell.
In another report released on April 25, DZ BANK AG also upgraded the stock to a Hold with a $163.00 price target.