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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 (3811)	6/19/1998 12:40:00 PM
From: pat mudge	Read Replies (2) \| Respond to of 6180

New report out from Robertson Stephens: <<< BancAmerica Robertson Stephens Upgrades Texas Instruments to a Buy PR Newswire - June 19, 1998 11:26 SAN FRANCISCO, June 19 /PRNewswire/ -- BancAmerica Robertson Stephens research analyst Dan Niles upgraded Texas Instruments (NYSE: TXN) to a Buy yesterday based on the belief that the imminent divestiture of the DRAM business combined with improving DSPS business in 2H:98 would drive the stock. The first part came true after the close yesterday. In the first half of the transaction Micron will pay $830 million in stock plus debt assumption to TI in exchange for TI's DRAM facilities and exemption from paying royalties for 10 years. The second half is a $750 million cash payment by TI to Micron in exchange for 6.5% convertible notes and subdebt with a total principal amount of $950 million to help finance future capital expenditure needs. According to Niles, "We believe that the EPS benefit to TI is approximately $0.18 in Q4:98 and about $0.20 in FY99. We believe that the foregone royalties from Micron will be mostly offset by new royalty payments from the Taiwanese." "We believe that a combination of multiple expansion, EPS increases and a general recovery in the overall semiconductor market will drive TI's stock price to $75 by year-end. We strongly recommend purchase of the stock," added Niles. Texas Instruments, Inc., manufactures and sells electronic products, including semiconductors, control devices, ASICs, DSPs, radar, and calculators. BancAmerica Robertson Stephens is a leading international investment banking firm focused on emerging growth companies. The firm's 45 senior research analysts cover over 585 companies. The information contained herein is not a complete analysis of every material fact respecting any company, industry or security. Although opinions and estimates expressed herein reflect the current judgment of the Firm, the information upon which such opinions and estimates are based is not necessarily updated on a regular basis; when they are, the date of the change in estimate will be noted. In addition, opinions and estimates are subject to change without notice. This Report contains forward-looking statements, which involve risks and uncertainties. The Company's actual results may differ significantly from the results described in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in "Investment Risks." BancAmerica Robertson Stephens from time to time performs corporate finance services for some companies described herein and may occasionally possess material, nonpublic information regarding such companies. This information is not used in the preparation of the opinions and estimates herein. Facts and other information discussed have been obtained from sources considered reliable but are not guaranteed. BancAmerica Robertson Stephens, its managing directors, its affiliates, and/or its employees may have an interest in the securities of the issue(s) described and may make purchases or sales while this report is in circulation. BA Robertson Stephens International Limited is regulated by the Securities and Futures Authority in the United Kingdom. This publication is not meant for private customers. The securities discussed herein are not FDIC insured, are not deposits or other obligations or guarantees of Bank of America NTSA, and are subject to investment risk, including possible loss of any principal amount invested. SOURCE BancAmerica Robertson Stephens /CONTACT: Janet Peischel, 415-248-4035, or Dan Niles, 415-693-3241, both of BancAmerica Robertson Stephens/ /Web site: rsco.com (TXN) >>>