A Wall Street analyst downgraded Texas Instruments and two other stocks from the equivalent of a buy rating to hold, citing growing weakness in demand for cell phones.

"We continue to believe that Texas Instruments remains among the best-positioned semiconductor companies long term," wrote Friedman Billings Ramsey analyst Chris Caso in a note to clients. "However, we do not think the company can escape the effects of what appears to be slowing demand, particularly within the handset supply chain."

In a separate note, Caso said he believes the semiconductor market on the whole is weakening because of rising inventory levels, a weaker than expected PC market and declining demand for cell phones.

"While we have been cautious on the semiconductor group in general since late March... we have still been hopeful for a [third quarter] rebound," wrote Caso. "We no longer hold such optimism."

In addition to downgrading Texas Instruments, Caso downgraded National Semiconductor and On Semiconductor Corp. to "market perform," his firm's equivalent of a hold rating. The analyst wrote that his favorable long-term view of the stocks has not changed, he no longer feels the stocks can outperform in the near term.

Caso added that while he thinks stocks in the sector still have room to fall, the sector will likely offer attractive buying opportunities later in the year.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved