Following the first day of chip maker Texas Instruments Inc.'s two-day meeting with members of Wall Street, analysts said the company's analog business continues to present its best growth opportunity.
"The high performance analog segment has been the most significant growth driver for the company and we would expect this to remain the case in the future," Cowen and Co. analyst John Barton said in a note to investors.
Banc of America Securities analyst Sumit Dhanda said that, during the meeting, Texas Instruments' management identified sales growth as a top priority, expecting growth in analog chips, embedded processors and applications processors.
He likes the company's plan but questions if it will come to fruition.
In a note to clients, Dhanda said that given Texas Instruments' prior track record of execution, it would be premature to dismiss their growth targets outright. But he wonders if the company "can they bring home the bacon?"
Dhanda said growth depends on Texas Instruments, which already has a leading market position, gaining an even greater share of the high performance analog chip market. The company also will have to turn around its underperforming high volume analog group in a relatively short time.
Texas Instruments remains a 'Show Me' story, Dhanda said, maintaining his 'Neutral' rating and $34 price target.
Shares of the Dallas-based company were flat at $29.77 in afternoon trading, as the Dow Jones Industrials fell more than 100 points. Dhanda's price target represents a roughly 14 percent premium to Friday's latest trading price.
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