From Standard & Poor's Equity ResearchCITIGROUP MAINTAINS BUY ON TEXAS INSTRUMENTS
Citigroup analyst Glen Yeung says Texas Instruments' (TXN) fourth quarter results were better than consensus, including gross margin of 44%.
Yeung thinks the company's first quarter guidance is no real surprise in light of fourth quarter shortfalls seen at other chip companies. He thinks the potential for a bottom is in place. He believes TXN continues to be proactive in managing cycle via cost cuts, and notes its recent 12% headcount reduction. He expects the company's high level of efficient R&D spending to result in market-share gain.
He cuts $0.32 2009 EPS estimate to $0.28, now including $180 million restructuring expense. He maintains $16 price target.
WEDBUSH MORGAN UPGRADES JO-ANN STORES TO BUY FROM HOLD
Wedbush Morgan analyst Joan Storms is upgrading Jo-Ann Stores (JAS) as positive secular tailwinds to help offset challenging macro environment. She notes these tailwinds include positive market share gains from competitors exiting the business and positive industry trends in the sewing business.
Also, Storms says JAS has executed solidly with regard to merchandising, inventories, balance sheet; positive real estate trends helping occupancy, new store growth.
She maintains $0.71 fourth quarter EPS view on -5% same-store sales. She raises fiscal year 2010 (January) EPS to $1.00 from $0.92 and $12 price target to $16.