12:19 PM EDT, 04/24/2024 (MT Newswires) -- Texas Instruments' ( TXN ) analog sector is expected to hit bottom in H1 "with a gradual recovery from here," Morgan Stanley said Wednesday in a report.

Analog sales in Q1 fell 9.1% from Q4 and dropped 14% from a year earlier, and embedded-processing revenue declined 13% from Q4 and 22% from a year earlier, the report said.

"We think that revenues are hitting bottom, for TXN and for the industry," Morgan Stanley said.

Texas Instruments ( TXN ) reported Q1 earnings late Tuesday of $1.20 per diluted share, down from $1.85 a year earlier. Revenue in the quarter ended March 31 fell to $3.66 billion from $4.38 billion.

The semiconductor company provided Q2 guidance for "roughly seasonal results," topping Morgan Stanley's expectations, according to the report.

Texas Instruments ( TXN ) expects Q2 EPS of $1.05 to $1.25 on revenue of $3.65 billion to $3.95 billion.

Morgan Stanley raised the price target on Texas Instruments ( TXN ) stock to $150 from $146 and maintained an underweight rating.

Texas Instruments ( TXN ) shares jumped 6.4% in recent Wednesday trading. Several other analysts boosted their price targets on the stock.

Price: 176.07, Change: +10.60, Percent Change: +6.41