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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: John Chen who wrote (4637)	9/18/1999 10:04:00 AM
From: slacker711	Read Replies (2) \| Respond to of 6180

A little dated but the SSB report from 9/9....Mot is using some TXN DSP's in their cell phones. smithbarneyresearch.com TXN: Raising Price Target Salomon Smith Barney Thursday, September 09, 1999 -------------------------------------------------------------------------------- --SUMMARY:--Texas Instruments--Semiconductors --EARNINGS PER SHARE-------------------------------------------------------- FYE 1 Qtr 2 Qtr 3 Qtr 4 Qtr Year Actual 12/98 EPS $0.22A $0.18A $0.21A $0.30A $0.90A Previous 12/99 EPS $0.33A $0.46A $0.45E $0.50E $1.73E Current 12/99 EPS $0.33A $0.46A $0.45E $0.50E $1.73E Previous 12/00 EPS $0.51E $0.56E $0.59E $0.60E $2.25E Current 12/00 EPS $0.53E $0.58E $0.61E $0.62E $2.35E Previous 12/01 EPS $N/A $N/A $N/A $N/A $N/A Current 12/01 EPS $N/A $N/A $N/A $N/A $N/A Footnotes: --FUNDAMENTALS-------------------------------------------------------------- Current Rank........:1M Prior:No Change Price (9/7/99)......:$91.62 P/E Ratio 12/99.....:53.0x Target Price..:$100.00 Prior:85.00 P/E Ratio 12/00.....:39.0x Proj.5yr EPS Grth...:20.0% Return on Eqty 98...:N/A% Book Value/Shr(99)..:8.26 LT Debt-to-Capital(a)12.5% Dividend(99)........:$.17 Revenue (99)........:9482.00mil Yield...............:0.2% Shares Outstanding..:812.2mil Convertible.........:No Mkt. Capitalization.:74413.8mil Hedge Clause(s).....: Comments............:(a) Data as of the most recently reported quarter. Comments............: --OPINION:------------------------------------------------------------------ Summer was stronger than the seasonal norm and the company expressed confidence it will continue to sequentially grow revenues from 3Q99 to 4Q99. High utilization rates, firm to higher commodity prices and a positive product mix, should all have a positive impact on gross margins, which we believe could rise above the company's target of 50 percent. Customer inventories are low. Demand remains strongest in wireless, which is "explosive", including DSPs and power management analog (chips that allow your battery to run longer). The company is taking further share of DSPs in Motorola cellular handsets. TXN will likely raise capital spending in fiscal year 2000 significantly above this year's $1.3 billion. The company is eligible to sell its 41 million shares of Micron stock beginning October 1st. We expect the company to sell the shares opportunistically, but with no particular timing or price. Owing to the prospects of higher gross margins, we are raising our fiscal 2000 EPS from $2.25 to $2.35 and our price target from $85 to $100.