Texas Instruments: Recovery Seen As Gradual

Lehman’s Tim Luke yesterday afternoon trimmed his estimates on Texas Instruments (TXN) in anticipation of “a gradual slope to the shape of TI’s recovery in order and revenue trends” moving into the second quarter. “We recognize that macro economic softness could further temper prospects for revenue recovery.”

Luke now sees revenue for the June quarter of $3.29 billion, down from $3.35 billion; EPS goes to 35 cents from 36 cents. For 2007, he goes to $1.51 a share from $1.53; for 2008, he’s now at $1.86 a share from $1.89. He maintains his March estimates of $3.15 billion and 31 cents.

Luke says checks find “lingering” inventory with contract manufacturers, with OEMs “still focused tightly on managing their inventory levels.”

Luke maintains an Overweight rating and $36 price target on the stock.

TI yesterday was off 37 cents at $29.73.