TD Cowen analyst Joshua Buchalter upgraded the rating on Texas Instruments to a Buy yesterday, setting a price target of $245.00.
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Joshua Buchalter has given his Buy rating due to a combination of factors, including the anticipated end of industrial semiconductor de-stocking and the strategic positioning of Texas Instruments (TI) to capitalize on a market recovery. Despite ongoing macroeconomic and tariff concerns, Buchalter believes TI is well-positioned to outperform in various recovery scenarios, whether sharp or gradual.
Moreover, TI’s robust US-based manufacturing capabilities and its realigned portfolio are expected to help the company regain market share in key industrial and automotive sectors. The company’s utilization rates are currently higher than many estimates, indicating potential leverage as volumes improve. Buchalter also highlights the expectation of a significant increase in free cash flow per share, driven by reduced capital expenditures post-2025, which further supports the Buy rating.