Hi Bob, I thought the article fell into the "abysmal" category, but I posted it mostly to show how "far off" the mark some of these analysts can be, and also, to highlight their prediction of a $26 price target when TXN is presently in the 31 to 32 range. That means they are predicting a 20 percent drop in price over the next 12 months. I guess anything can happen in the stock market, but that seems pretty far out to me.
Also, what does PC falloff have to do with TI? In the authors own words,
<<"Our checks indicate the wireless and analog foodchain remain healthy at this point," the research analyst said. "However, we believe, given the slowdown in the PC foodchain, if one follows cyclical patterns in the semiconductor industry over the past 25 years, one might assume that growth in other semiconductor groups may start to moderate soon as well.">>
In other words, TI's business is healthy, but because the PC foodchain is slowing down, TI's business may start to moderate. That type of thinking is really a "leap" of something or other, and we could debate that conclusion for quite some time.
Don |
