Analyst Vivek Arya from Bank of America Securities reiterated a Sell rating on Teradyne (TER – Research Report) and decreased the price target to $85.00 from $100.00.
Vivek Arya has given his Sell rating due to a combination of factors including Teradyne’s exposure to short-term macroeconomic challenges and the ambitious nature of its long-term targets. Despite the company’s focus on growth areas like data center compute, industrial automation, and robotics, Arya highlights concerns about the visibility of a recovery in the second half of 2025 and the feasibility of achieving the company’s optimistic sales targets for 2026 and 2028.
Additionally, Arya points out that Teradyne’s growth projections depend on several assumptions, such as gaining market share in specific sectors and a strong recovery in the auto and industrial markets. The company’s limited exposure to key players in AI compute and memory markets, coupled with modest growth expectations in its Automated Test Equipment market, further supports Arya’s cautious stance. As a result, the price objective has been lowered to $85, reflecting these demand headwinds and muted growth opportunities.
In another report released on February 25, Morgan Stanley also maintained a Sell rating on the stock with a $112.00 price target.
TER’s price has also changed moderately for the past six months – from $131.510 to $87.070, which is a -33.79% drop .
Questions or Comments about the article? Write to editor@tipranks.com