Texas Instruments: Analog Chip Demand Bottoming

Texas Instruments (TXN) got some love yesterday from Citigroup’s Glen Yeung. He raised his first quarter EPS estimate to 32 cents a share from 31 cents; his revenue estimate goes to $3.186 billion from $3.145 billion.

This is not exactly a monumental call; the company itself has projected revenue at $3.01 billion to $3.28 billion, with profits of 28 to 34 cents a share. But it does push his estimates toward the higher end of the range. I would point out that Yeung also kept his overall 2007 estimate at $1.76 a share.

Yeung says mobile phone handset demand appears “stable,” and with an “improved mix.” He says analog chip demand is “showing signs of bottoming.”

He continues to rate the stock a Buy, with a $36 price target.

Texas Instruments yesterday was up 41 cents at $31.17.

TXN 1-yr chart