The new price target represents a potential upside of 17% from the stock's closing price Thursday of $128.11.
The firm is bullish on the company's free cash flow levels as the chipmaker has a good history of free cash flow returns. This is important because of the elevated trade tensions that are weighing on the chip sector.
The firm noted that Texas Instruments has strong positioning in burgeoning industries like 5G, the internet of things and electric vehicles. It also noted that TXN is up more than 20% from the low it reached in May.
Texas Instruments recently announced that it plans to raise its quarterly dividend by 13 cents to 90 cents a share, a 17% increase.
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