TECH - Is Wall Street Too Optimistic On Texas Instruments? Analyst Says Yes Here's Why | Benzinga
Bernstein analyst Stacy Rasgon downgraded Texas Instruments Inc (NASDAQ: TXN) from Market Perform to Underperform, maintaining estimates and $145 target price.
The company has structurally raised its capex outlook significantly as it builds out capacity to support revenue growth over the next 10-15 years, enough to keep ~$30 billion in revenue by 2026 and ~$45 billion by 2030. This capacity will come to fruition via gross capex investments that will average ~$5 billion yearly from 2023-2026 and be in the range of 10-15% of revenue beyond then, with depreciation reaching ~$2.5 billion by 2025. Significant amounts of new capacity will be built in Richardson, Texas (RFAB2), Lehi, Utah (LFAB), and ...