Key Takeaways:
- Texas Instruments (TXN, Financial) faces challenges due to China's new semiconductor policy.
- Analysts remain optimistic with an average stock price target of $198.68.
- GuruFocus estimates suggest a potential upside of 15.27% based on GF Value.
The stock of Texas Instruments (TXN) recently took a hit, dropping by 5.5%, following China's confirmation of its exemption policy concerning U.S. semiconductor companies. This policy implies that chips produced by firms outsourcing manufacturing beyond U.S. borders are now considered non-U.S. origin. As a result, companies like Intel and Texas Instruments are subject to elevated tariffs, directly impacting their bottom line.
Wall Street Analysts Forecast
Despite recent challenges, analysts see potential for Texas Instruments. Out of 27 analysts offering one-year price targets, the average target price is set at $198.68. This prediction includes a high estimate of $284.00 and a low estimate of $130.00. These figures suggest a promising upside of 40.36% from the current price of $141.55. Investors can explore detailed estimates on the Texas Instruments Inc (TXN, Financial) Forecast page.
Currently, the consensus from 36 brokerage firms positions Texas Instruments with an average recommendation of 2.8, indicating a "Hold" status. This rating scale ranges from 1 (Strong Buy) to 5 (Sell), providing a nuanced view of the stock's potential.
Furthermore, GuruFocus estimates place the GF Value for Texas Instruments at $163.16 over the next year. This estimate, derived from historical trading multiples, business growth trends, and future performance forecasts, suggests an anticipated upside of 15.27% from the current trading price. For comprehensive data, visit the Texas Instruments Inc (TXN, Financial) Summary page.
