11:38 AM EDT, 07/24/2024 (MT Newswires) -- Texas Instruments' ( TXN ) Q2 results showed the bottom has likely passed for the analog business for the chipmaker and the overall industry, Morgan Stanley said Wednesday in a report.

Late Tuesday, the company reported Q2 earnings of $1.22 per diluted share, topping Wall Street's estimates, while revenue matched the consensus of $3.82 billion. Analog sales fell 11% from a year earlier but rose 3.2% from the previous quarter, Morgan Stanley said.

"As we highlighted last quarter, we think that we have passed the bottom for analog, for both [Texas Instruments ( TXN )] and the industry," the brokerage said. The company guided in line with consensus for a 7% sequential growth in Q3 despite "some ongoing headwinds" in auto and industrial, the report said.

"While the end-market contribution of [Q3] is unclear," the company cited some pockets of excess inventory in portions of the automotive and industrial markets, Morgan Stanley said.

The brokerage raised its price target on Texas Instruments ( TXN ) stock to $168 from $156 while reiterating its underweight rating.

Shares of Texas Instruments ( TXN ) rose 0.4% in recent trading Wednesday.

Price: 199.17, Change: +0.88, Percent Change: +0.44