In the latest trading session, Teradyne (TER) closed at $88.51, marking a -0.41% move from the previous day.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
In the most recent trading session, Teradyne (TER) closed at $88.87, indicating a -1.44% shift from the previous trading day.
Shares in test technology company Teradyne (TER 0.23%) declined by 21.4% in the week to Friday morning. The move comes after management updated the market on current trading conditions during its analyst day presentation on Tuesday.
Initiated a position in Teradyne at $108 due to its narrow to strong economic moat, despite not being significantly undervalued, and used a partial hedge strategy. Teradyne's revised revenue growth outlook for 2025 is 5%-10%, with mid-term growth expected at 12%-18% through 2028. Base case DCF derived Fair Value is $115.7 (33% upside from the current price); if they miss their mid-term targets by 20%-30%, Fair Value would be $90.
Major U.S. equities indexes fell Tuesday, extending the downtrend for stocks.
Shares of Teradyne (TER) slumped 17% to lead S&P 500 decliners Tuesday, as the maker of testing equipment for chips and electronics updated its guidance in response to the potential impact of Trump administration trade moves.
Teradyne (TER) reported earnings 30 days ago. What's next for the stock?
TER is benefiting from growing demand for AI accelerator ASICs, networking and HBM despite weakness in Robotics, System and Wireless tests.
Teradyne's price drop is seen as an overreaction; AI-driven SoC TAM growth and reduced mobile dependence make it a good entry point. The company's Semi Testing segment shows promise with AI applications driving TAM expansion, while the robotics segment struggles with low margins and growth. Management's optimistic 2028 revenue and EPS targets imply significant growth, but market conditions and Chinese competition pose risks.
Teradyne continues to deserve a buy rating due to strong AI demand. TER's 4Q24 revenue grew 12% y/y, driven by a 30% increase in semiconductor test segment, particularly from AI compute and HBM testing demand. TER's strategic expansion into power semiconductor testing, through a partnership with Infineon, positions it well for future growth in the EV and renewables markets.
TER's fourth-quarter 2024 result beat estimates with strong AI-driven growth in semiconductor testing, despite challenges in industrial automation and robotics.