12:20 AM EDT, 04/24/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We up our 12-month target to $180 from $172, on higher revised P/E of 27.5x our '25 EPS view, above the 5-year historical forward average of 25.2x to reflect our view of trough fundamentals. We reduce our '24 EPS estimate to $5.26 from $5.75 and '25 to $6.55 from $7.15. TXN posts Q1 EPS of $1.20 vs. $1.85, beating the $1.08 consensus. Sales fell 16% (-10% seq.), near expectations, on declines in analog (-14%), embedded (-22%), and other areas (-33%). Although all markets saw declines, Q2 guidance points to seq. revenue stabilization ($3.65B-$3.95B vs. $3.66B in Q1) and may be the start of a cyclical recovery (sales -30% from Q3 '22 peak). Gross margin compressed to 57% from 65%, near expectations, on lower revenue and utilization. Elevated capex spend ($5B annually) is constraining FCF (will benefit from $1B U.S. gov't aid in '24), but we believe remains a good strategic plan as customers crave supply chain exposure outside China/Taiwan. Customer inventories in markets like industrials appear to be improving.