Just ask JP Morgan security analyst that put out this bold buy recommendation literally minutes before Texas Instruments warned and stock shed 8.15% after hours.
Hot Research PM | THURSDAY, DECEMBER 8, 2011
Texas Instruments May Boost Q4 Guidance
J.P. Morgan says the chip giant will see strength in its OMAP products.
Texas Instruments (TXN: NYSE)
By J.P. Morgan Securities ($30.67, Dec. 8, 2011)
After the close Thursday, Texas Instruments is scheduled to provide an update on business conditions for the fourth quarter.
We expect TI (ticker: TXN) to raise the midpoint of its fourth-quarter revenue guidance from $3.4 billion (down 2% quarter-over-quarter) to $3.45 billion (down 0.5% quarter-over-quarter) due to upside from its OMAP [multicore processors] business (estimated 7% of third-quarter sales) and we recently raised our estimates on TI due to strength in its OMAP products from the smartphone and tablet end-markets.
TI continues to be our top pick, and we reiterate our Overweight rating due to upside potential to consensus estimates throughout 2012.