Texas Instruments Stocks Falls Enough To Prompt a 2-notch Upgrade

Texas Instruments Inc.'s stock climbed 1.1% in afternoon trade Monday, after Raymond James upgraded the semiconductor maker by two notches, as the recent pullback in price has left it with a rather positive reward-versus-risk profile. Analyst J. Steven Smigie raised his rating to strong buy, after being at neutral for the last two years. He set a $62 stock price target, which is 12% above current levels. The stock has lost 5.8% since the company reported disappointing first-quarter results, and provided a downbeat outlook, after the April 22 close. Smigie said that while most of TI's results were soft, its auto and industrial business, which accounts for about half of sales, remains healthy. He said the disappointing outlook was impacted by unfavorable currency moves, but doesn't change the overall health of the business. "Given the slight discount on valuation along with a healthy business, we think the risk/reward on [TI's] shares is positive, thus our strong buy rating," Smigie wrote in a note to clients. The stock is up 3.5% year to date, compared with a 1.3% rise in the PHLX Semiconductor Index and a 2.7% gain in the S&P 500 .