Texas Instruments Stock Edges Higher Despite Price Target Cut By Wells Fargo Over Slowdown Concerns: Retail Remains Bullish

Wells Fargo analysts said they struggle to view Texas Instruments stock taking off after the fourth-quarter results due to a slowdown in demand.

Shares of Texas Instruments Inc. (TXN) edged up in pre-market trade on Friday, rising by nearly 0.5%, beating downbeat sentiment over the stock’s prospects from analysts at Wells Fargo.

According to a report by TheFly, analysts at Wells Fargo reduced their price target for Texas Instruments’ stock from $208 to $200. Despite the reduction, this implies an upside of a little over 6.7% from Thursday’s closing price.

However, Wells Fargo analysts maintained an ‘Equal Weight’ rating on the stock.

The brokerage said it struggles to view Texas Instruments stock taking off after the fourth-quarter results due to a slowdown in demand. The analysts told investors in a research note that they foresee a potential slow down further into 2025.

They also noted that the CHIPS Act grant is expected to benefit Texas Instruments’ depreciation expenses by $30 million to $40 million in 2024 and $110 million to $120 million in 2025.

Texas Instruments declared a quarterly cash dividend of $1.36 per share of common stock on Thursday.

Retail sentiment on Stocktwits was in the ‘bullish’ (69/100) territory, edging up from the previous day. Message volume was at ‘extremely high’ (90/100) levels, showing increased retail interest.

Texas Instruments' share price has fallen by more than 8% in the past six months, but its one-year performance has been better, with returns of more than 15%.

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