Will This Upgrade Help Texas Instruments (TXN) Stock Today?

Story updated at 10 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Texas Instruments (TXN) was upgraded to "neutral" from "reduce" by Nomura Friday.

Texas Intrsuments gained 0.5% to $45.47 in morning trading.

The firm raised its price target for the company $45 from $42. Nomura analysts Romit Shah, Sidney Ho, and Sanjay Chaurasia said Texas Instrument posted solid earnings, and that its margins have more upside potential.

"TI is showing more margin leverage than we had expected," the analysts wrote. "The company expects gross margin to improve about 300bps in Q2 on 10% qoq revenue growth, which implies incremental margins of 80-90%. A big part of that is the decline of under-utilization charges, but also mix and lower costs."

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Separately, TheStreet Ratings team rates TEXAS INSTRUMENTS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate TEXAS INSTRUMENTS INC (TXN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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