Texas Instruments (NYSE: TXN) is the world's third largest semiconductor company, with operations in more than 25 countries.
In general, analysts see TXN's revenue increasing 5-8% in 2008, with the company likely to increase its leading market share in the analog segment; a smaller annual revenue increase is expected in the handset digital segment.
Further, analysts say TXN is well positioned to benefit from increasing use of higher-end analog products. Meanwhile, higher plant utilization and a recent restructuring should aid TXN's bottom line. The Reuters F2008/F2009 EPS consensus estimates for TXN are $2.09/$2.31.
The risks? Analysts are keeping an eye on efforts by TXN's largest handset customers to diversify their supplier bases. A sustained slowdown in the global economy would also, obviously, hurt TXN's results.
The First Call mean rating for TXN is: Buy. [34 firms.] Mean 2008 target: $37. [high: $44, low: $26.]
Stock Analysis: Texas Instruments is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from TXN's shares. Sell / Stop Loss if you were to purchase shares in this company: $17.
Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.
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