Kaufman Bros. maintains hold; raises price target
Kaufman Bros. analyst Suji De Silva raised estimates on Texas Instruments on Dec. 9, saying in a Dec. 9 note to clients that the chipmaker's scheduled 2009 mid-third quarter update revealed a more bullish outlook.
Specifically, the analyst said, the company's 2009 third-quarter semiconductor revenue range was narrowed and raised slightly to $2.9 billion-$3.02 billion (and increase of 1%-5% over the previous quarter) vs. prior guidance of $2.78 billion-$3.02 billion (a decline of 3% to +5%). De Silva believes semiconductor growth implied in this guidance (which excludes calculator revenues) represents the third straight quarter of above-seasonal semiconductor growth.
The company's overall EPS guidance range also narrowed and increased slightly, said De Silva; it is now forecast to be 47 cents-51 cents, vs. prior guidance of 42 cents-50 cents).
"We believe TXN's improved outlook matches our recent checks indicating improving visibility and ordering patterns, particularly around key analog end demand markets such as computing, handsets, storage, autos and industrial," the analyst wrote. De Silva raised the firm's 2009 earnings estimate from $1.08 per share to $1.12 per share and its 2010 earnings estimate from $1.73 per share to $1.87 per share, and expects 2009 revenue to be $10.4 billion vs. the prior forecast of $10.3 billion.
The analyst also raised a price target on Texas Instruments from $26 to $28.
UBS maintains neutral; raises price target
After the close of trading Dec. 8, FedEx announced that fiscal 2010 second-quarter earnings will come in at $1.10 per share, significantly higher than the prior guidance range of 65 cents-95 cents. UBS analyst Rick Paterson raised estimates on the package-delivery company on Dec. 9.
Paterson said in a note to clients that the upside vs. FedEx's original expectations was driven by better than expected growth in international priority and domestic ground parcel shipments, and cost cutting. He raised earnings estimates for fiscal 2010 (ending May) from $2.99 per share to $3.56 per share and for fiscal 2011 from $4.03 per share to $4.50 per share.
"Our customer surveys show no indications of an inventory restocking on a broad scale, yet," wrote the analyst.
Paterson raised his one-year price target on the shares from $91 to $99.
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