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

To: otter who wrote (3806)	6/19/1998 11:16:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 6180

Texas Instruments Inc Maintained Near-Term 'Neutral' at Merrill Princeton, New Jersey, June 19 (Bloomberg Data) -- Texas Instruments Inc. (TXN US) was maintained near-term ''neutral'' by analyst Thomas Kurlak at Merrill Lynch & Co. The long-term rating remained ''buy.'' ======== Texas Instruments Raised to 'Buy' at Raymond James Princeton, New Jersey, June 19 (Bloomberg Data) -- Texas Instruments Inc. (TXN US) was raised to ''buy'' from ''accumulate'' by analyst Shekhar Wadekar at Raymond James Financial Inc. The 12-month target price is $70.00 per share. ======== Texas Instruments Cut to 'Buy' at Needham & Co. Princeton, New Jersey, June 19 (Bloomberg Data) -- Texas Instruments Inc. (TXN US) was downgraded to ''buy'' from ''strong buy'' by analyst Tad Lafountain at Needham & Co. The 12-month target price is $72.00 per share.

To: otter who wrote (3806)	6/19/1998 11:17:00 AM
From: pat mudge	Respond to of 6180

>>> Reuters Story - June 19, 1998 10:42 NEW YORK, June 19 (Reuters) - Raymond James said Friday it raised its rating on shares of Texas Instruments Inc. to buy from accumulate. -- Further details not immediately available. -- Stock up 9/16 to 54-9/16.>>>> >>>> <<< RESEARCH ALERT-TI ,Micron reiterated Reuters Story - June 19, 1998 10:03 NEW YORK, June 19 (Reuters) - Gruntal & Co. said Friday analyst Mona Eraiba reiterated her ratings on Texas Instruments Inc. and Micron Technology Corp. after Micron agreed to acquire TI's dynamic random access memory (DRAM) business. -- Reiterated strong buy rating on TI with 12-month price target of $70 a share. -- Reiterated hold rating on Micron "as the DRAM market searches for a bottom." -- Said plans to raise earnings estimates on TI following the company's July report of second quarter earnings. -- Shares of Texas Instruments rose 11/16 to 55-3/16 and Micron rose 1-11/16 to 23-15/16 in early morning activity.>>>> >>> PR Newswire - June 19, 1998 10:50 DCR TXN %CPR %RTG V%PRN P%PRN ------------------------------------------------------------------------ Jump to first matched term CHICAGO, June 19 /PRNewswire/ -- Duff & Phelps Credit Rating Co. (DCR) views favorably the decision of Texas Instruments Incorporated (TI) (NYSE: TXN) to exit the troubled DRAM market, although DCR does not expect TI's agreement with Micron Technology to result in any near-term rating action. The cyclical DRAM market is in a deep trough due to excess global capacity resulting in collapsing prices. Prices of some popular DRAM configurations have fallen 95 percent over the past two years. While its solid portfolio of other products, led by digital signal processors (DSP), would allow TI to weather the DRAM slump, the major issues are strategy and focus. Near the two extremes of TI's semiconductor product line, DSPs and DRAMs represent radically different markets. TI controls 45 percent of the market for DSPs, which it invented. These chips allow the digital processing of signals representing sound, image, video and other real-world phenomena. The market is enjoying prodigious growth due to DSPs' importance in such devices as cellular phones, modems and a growing number of digital communications and entertainment devices. TI is focused on extending the design and promoting the application of DSPs. At the other extreme are commodity DRAMs. With little say in the functionality, configuration, use or price of these devices, DRAM makers must focus on low-cost manufacturability, manufacturing efficiencies and service. Micron has done an exceptional job meeting what are difficult challenges even in good years, primarily through its concentration on low-cost DRAM design and manufacturing. Through transferring its designs and processes without duplicate development and overhead expenses, Micron is in position to make the most of the TI DRAM production assets. TI is transferring to Micron its Italian and Texas DRAM wafer fabrication facilities (the latter of which will be mothballed), its Singapore assembly and test facility and its share in two remaining DRAM joint ventures, one in Japan, the other in Singapore. TI is giving Micron $750 million to fund the deployment of Micron's technology throughout the transferred facilities. In return, Micron is giving TI more than $600 million worth of Micron stock, $740 million face value of a convertible issue and $210 million face value of notes. Micron is also assuming $192 million of TI low-interest Italian mortgage notes. The market value of the securities TI is receiving for the facilities net of the $750 million financing it is providing Micron is about $800 million. TI expects to take a loss on the transaction as well as a restructuring charge to eliminate overhead no longer needed with its more streamlined business profile. The agreement is an alternative to TI's having to incur future DRAM losses, restructuring charges, and capital expenses to keep the facilities competitive. TI's $129 million of first quarter 1998 DRAM losses have probably deepened since then. The Micron common stock and convertibles could be valuable long-term investments. Micron has successfully specialized in a DRAM market that has historically fluctuated rapidly from deep losses to buoyant profitability. Current DRAM market problems are persistent but not permanent. Although riskier than keeping all of the $2.4 billion cash TI held at the end of the first quarter of 1998 in the bank, the Micron investment could produce a higher return. From a rating standpoint, getting the $190 million mortgage off TI's books is a minor positive. DCR expects the agreement to result in less TI earnings volatility, less management distraction and the opportunity for TI to deploy its assets in the 'DSP Solutions' market, which it considers more strategic. The negative is that as TI exits other businesses, its revenues are increasingly concentrated in one market. However, if TI wants to put most of its eggs in one basket, DSP Solutions appears an excellent choice. SOURCE Duff & Phelps Credit Rating Co. /CONTACT: P. Martin Ressinger, CFA, 312-368-5470, ressinger@dcrco.com or George J. Podrasky, CFA, 312-368-3207, podrasky@dcrco.com, both of DCR/ (TXN DCR) >>>>