Analyst Vivek Arya from Bank of America Securities maintained a Hold rating on Texas Instruments (TXN – Research Report) and keeping the price target at $176.00.
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Vivek Arya has given his Hold rating due to a combination of factors surrounding Texas Instruments’ current market position and future outlook. The company is expected to report a strong first quarter, potentially due to pull-ins ahead of tariff implementations. However, there is uncertainty regarding the second quarter, with potential risks arising from tariff impacts and the company’s exposure to the Chinese market.
Another factor influencing the Hold rating is the elevated inventory levels, which could lead to lower factory utilization and consequently impact gross margins. Additionally, Texas Instruments’ focus on US-based manufacturing might limit its flexibility compared to peers with more diversified production footprints. Despite these challenges, the company’s long-term investments in capacity expansion and its strategic positioning in the market are acknowledged, but the near-term risks and uncertainties justify a cautious outlook.
TXN’s price has also changed moderately for the past six months – from $195.770 to $145.610, which is a -25.62% drop .