Wall St. analysts are already concerned that sales of new Motorola (MOT) phones are off to a slow start this year.
Now, according to Barron’s, the research arm of Baird is writing that the mobile phone business shows “very weak trends, very little visibility, sub-normal utilization rates and high inventory levels.” Texas Instruments already narrowed its revenue forecast for its next quarterly report, and Wall St. reacted badly. And, Baird is also concerned about the pace of sales at Nokia (NOK).
While the news is bad for the hand set makers, it could really bang TI, especially if it only hits the low end of its new forecast.
TI’s (TXN) shares are up 10% this year on a belief that global chip supply is tightening. But, as concerns mount, the stock has dropped over the last five days, and stands at $31.57.
If worry about the next quarter mounts, TI could move back toward its 52-week low of just under $27.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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