Texas Instruments (NYSE:TXN) Should Capture Growth in 1H 2011

With inventory seeming to have bottomed and notebook PCs leveling, Texas Instruments (NYSE:TXN) should be poised to grow in the first half of 2011.

Needham noted, "We are now valuing TXN shares on a cash adjusted 2012 P/E of 13x compared to a 2011 cash adjusted P/E of 12x. Off of our 2012 EPS of $2.76 and net cash per share of $2.54, this resulted in raising our price target from $33 to $38. Management has recently indicated that the current inventory correction has bottomed and there appears to be stabilization in the notebook PC area. This should effectively position TXN to capture growth in 1H 2011."

Needham & Company maintains a 'Buy' on Texas Instruments, which closed Wednesday at $32.64, down 0.16, or 0.49 percent. They increased their price target on Texas Instruments from $33 to $38.